A type of protection that you pay for every month so that if things go wrong, you can get benefits and cash to pay for emergencies.
Examples
- Car insurance. If you are in a car accident or someone scratches your paint job, this pays for damages.
- Health insurance. If you need to visit the doctor or hospital, this helps pay for some of your costs.
- Disability insurance. If you are permanently injured, disability insurance pays for living expenses and medical expenses for you.
- Homeowners insurance. This insurance protects you financially in case of fire, break-ins, and other types of specific disasters.
- Life insurance. This insurance is paid out to a family after someone passes away. It pays for memorial or funeral costs and any final costs (like final medical costs).
- Renters insurance. If you rent an apartment, this coverage pays for any of your stuff that gets stolen or damaged while you live in the apartment.
- Liability insurance. If you get sued, this coverage is meant to protect you.