Understanding Insurance Basics

What is insurance?

• A loan that must be repaid with interest.

• A type of investment that guarantees high returns.

• A government program that provides free healthcare.

• Insurance is a contract that provides financial protection against risks.

Name three types of insurance.

• travel insurance

• life insurance

• health insurance, auto insurance, homeowners insurance

• pet insurance

What is health insurance used for?

• Health insurance is used to cover medical expenses.

• Health insurance is used to purchase groceries.

• Health insurance is used to cover travel expenses.

• Health insurance is used to pay for gym memberships.

How does car insurance protect you?

• Car insurance guarantees no accidents will happen.

• Car insurance is only necessary for new cars.

• Car insurance protects you from financial losses due to accidents, theft, or damage.

• Car insurance provides free car repairs regardless of the situation.

What is the purpose of life insurance?

• The purpose of life insurance is to provide financial security to dependents after the policyholder's death.

• To provide health insurance for the policyholder.

• To serve as a retirement savings plan.

• To cover funeral expenses only.

What are the benefits of having insurance?

• Increased financial risk

• Limited access to healthcare services

• The benefits of having insurance include financial protection, risk management, peace of mind, and access to necessary services.

• Higher monthly expenses

How can insurance help in emergencies?

• Insurance provides free medical care without any costs.

• Insurance only covers natural disasters.

• Insurance helps by offering free housing during emergencies.

• Insurance helps in emergencies by providing financial support for medical expenses, property damage, and loss of income.

What is property insurance?

• Property insurance is a type of life insurance.

• Property insurance is solely for commercial properties.

• Property insurance only covers natural disasters.

• Property insurance is a financial protection against risks to property, covering damage or loss.

Why is it important to have liability insurance?

• It guarantees protection against all types of risks.

• It is required by law for all businesses.

• It is only necessary for large corporations.

• Liability insurance is important because it protects against financial loss from legal claims.

How does insurance provide peace of mind?

• Insurance provides peace of mind by mitigating financial risks and ensuring support during unforeseen circumstances.

• Insurance increases financial burdens during emergencies.

• Insurance eliminates all risks and uncertainties.

• Insurance is only beneficial for wealthy individuals.