Insurance for Dummies

There are several major risks that you face regularly throughout your lifetime that, if they occur, can cause your financial ruin: major medical bills, major damage to or destruction of your residence, major lawsuits and the cost of defending them, long-term disability, premature death, and — especially for those over age 40 — the risk of extended long-term care

A policy is the legal contract between you and an insurance company in which the company agrees to pay covered claims when you have them in exchange for a monthly (or some other periodic) payment from you. Any given policy contains many coverages

When it comes to irreplaceable treasures, preventing the loss altogether is a far better strategy than insurance, without the costs or the pitfalls of insurance coverage.

When it comes to irreplaceable treasures, preventing the loss altogether is a far better strategy than insurance, without the costs or the pitfalls of insurance coverage.

And you’re at least a little familiar with the device that allows you to share the impact of any losses you have with others — insurance.

But you can take many constructive actions before the storms occur that greatly reduce the damage they cause in your life.