What Is Insurance and Why It Matters

Insurance helps protect you from unexpected financial loss. Instead of paying a large amount all at once, you pay a smaller monthly or yearly cost called a premium. In return, the insurance company helps cover certain expenses when something goes wrong. Insurance is commonly used for cars, homes, health, and life.

Understanding how insurance works can help you avoid costly mistakes and make better financial decisions. This guide explains insurance in simple terms so you can feel more confident about coverage.