Insurance: Everything You Need to Know (And Why It Matters More Than Ever)
Introduction to Insurance
What Is Insurance?
Let’s face it—we all want a safety net. Insurance is exactly that. It’s a contract (called a policy) between you and a company where you pay a little (premium) now, and if something goes wrong, they pay a lot to help you recover. Whether it’s a car accident, a fire, or a medical emergency, insurance helps you avoid financial disaster.
Why Does Insurance Exist?
Life’s unpredictable. One minute you’re sipping coffee, and the next, your roof is leaking from a storm. Insurance exists to make sure those unexpected events don’t destroy your finances. It spreads risk among many people, so no one person has to bear the full brunt of a crisis alone.
A Quick Glimpse into the History of Insurance
Believe it or not, insurance isn’t new. It dates back thousands of years to ancient Babylon. Merchants used contracts to protect their goods while sailing. Fast forward to the Great Fire of London in 1666, and modern property insurance was born. Today, it’s a multi-trillion-dollar industry.
