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What are the benefits of insurance?

The primary benefit of insurance is to reduce financial risk. You can buy an insurance policy to mitigate risk in just about any category you can imagine. Here are just a few common forms of insurance and how they benefit the insured.

What are the characteristics of insurance?

Another characteristic of insurance is the payment of fortuitous losses. A fortuitous loss is unforeseen and unexpected and occurs as a result of chance. In other words, the loss must be accidental. The law of large numbers is based on the assumption that losses are accidental and occur randomly.

What are the different types of insurance coverage?

The most common types of insurance coverage include auto insurance, life insurance and homeowners insurance. Insurance coverage helps consumers recover financially from unexpected events, such as car accidents or the loss of an income-producing adult supporting a family.

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