Introduction
Insurance is a financial tool designed to protect you from unexpected losses. Many people ignore insurance until disaster strikes. That’s reckless thinking. Insurance is not an expense—it’s risk management.
What Is Insurance?
Insurance transfers financial risk from you to an insurance company in exchange for a regular premium. When a covered loss occurs, the insurer pays compensation.
Common Types of Insurance
- Health insurance
- Life insurance
- Vehicle insurance
- Home or property insurance
- Travel insurance
Why Insurance Is Important
- Protects against large financial losses
- Covers medical emergencies and accidents
- Provides financial security for family members
- Prevents savings from being wiped out
- Reduces long-term financial stress
Key Insurance Mistakes People Make
- Being uninsured to “save money”
- Choosing the cheapest policy without coverage review
- Ignoring policy terms and exclusions
- Not updating coverage after life changes
