Podcast
Questions and Answers
What is insurance and how does it function to provide financial protection?
What is insurance and how does it function to provide financial protection?
Insurance is a contract that provides financial protection against potential future losses in exchange for regular premium payments.
Explain the principle of risk pooling in insurance.
Explain the principle of risk pooling in insurance.
Risk pooling involves combining the risks of multiple individuals to minimize the financial impact on any single member in the event of a loss.
What is the role of premiums in an insurance policy?
What is the role of premiums in an insurance policy?
Premiums are the regular payments made by policyholders to the insurance company for coverage against specified risks.
How do deductibles affect the cost of insurance?
How do deductibles affect the cost of insurance?
Why is it important for individuals to understand their insurance policies?
Why is it important for individuals to understand their insurance policies?
Flashcards
Insurance
Insurance
A contract that protects individuals or businesses from financial losses.
Risk
Risk
The possibility of an unwanted event happening.
Protection from loss
Protection from loss
Insurance mitigates financial risks.
Contract
Contract
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Financial loss
Financial loss
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