Latte Money 101
Insurance 101
The parts of a policy, the risks it transfers and the coverage it actually promises.
10 lessons · about 40 minutesIn this series
Start at the top. Take it one idea at a time.
- 01What Is Insurance?Insurance is a contract that transfers specified financial risks to an insurer in exchange for a premium.4 min
- 02RiskInsurance risk is the possibility of an event that creates a financial loss. Insurance is most useful for risks that would be difficult to absorb yourself.4 min
- 03PremiumsA premium is the price you pay for insurance coverage. Premiums depend on the type and amount of risk the insurer is taking.4 min
- 04DeductiblesA deductible is the portion of a covered claim that you pay before the insurer pays the remaining eligible amount.4 min
- 05Coverage LimitsA coverage limit is the maximum amount an insurer will pay for specified coverage under a policy.4 min
- 06ExclusionsAn exclusion is an event, condition or type of loss that an insurance policy does not cover.4 min
- 07Life InsuranceLife insurance pays a death benefit when the insured person dies while covered. Its purpose is to address a financial need created by that death.4 min
- 08Term and Permanent Life InsuranceTerm life insurance covers a defined period. Permanent life insurance is designed for lifetime coverage while the policy remains in force and may build cash value.4 min
- 09Disability InsuranceDisability insurance can replace part of your income if illness or injury prevents you from working, subject to the policy terms.4 min
- 10Home InsuranceHome insurance can protect a home, belongings, liability and additional living costs, but coverage depends on the policy and exclusions.4 min