© 2010 MyHealthInsuranceAdvisor.Org

Insurance

Insurance – all insurance is simply a means to transfer the financial risks associated with certain events to be shifted to a third party (insurance company).  In exchange for relatively small periodic payments, the insurer agrees to take responsibility for the financial expenses or losses the policyholder may incur under the terms of the insurance agreement.    The ‘value’ of any insurance can be determined by comparing how much a person pays for the coverage versus how well or thoroughly the insurer actually pays according to the policy.   This is in contrast to Health Care Coverage. 

Glossary © 2010 MyHealthInsuranceAdvisor.Org