What is insurance?

In its most classic definition, we get insurance so that if some unfortunate thing should occur, we have money reserved, through some third-party, that can be used to. . .
  • Pay for expenses that come about because of that unfortunate occurrence.
  • Replace income that is lost due to the fact that we’re unable to work because of that unfortunate occurrence.

In a very real sense, all insurance types fit snuggly into both categories above, with the exception of Whole Life insurance.

 

While the others are based on the likelihood of something happening, Whole Life insurance is based on the certainty of an unfortunate occurrence. . . your eventual passing.

 

Interestingly enough, as you read through this site, you will learn of a type of life insurance that’s based not on the likelihood of death happening, but rather, based on the likelihood of death happening before a particular time.

 

What you’ll learn in that section is how that type of insurance functions and why someone would want to have that type of insurances.

 

Now that you have a sense of what insurance is for, please go through the rest of the site and examine the two major categories of insurance; death benefits and living benefits.