Insurance

What is Risk?

Risk

[risk]

noun

1.

Risk is the likelihood that an insured event occurs, that is, an event in which the insurance company is likely to pay out a Claim. Insurance companies use Risk when determining whether to insure a home, car, or individual, and when setting Premiums. People with lower Risk generally pay lower rates, and people with higher Risk generally pay higher rates.

Have A Question About This Topic?

Thank you! Oops!

Related Content

Preparing for the Expected

Preparing for the Expected

You can plan ahead to protect yourself and your family against the financial consequences of deteriorating health.

5 Benefits of Working in Retirement

5 Benefits of Working in Retirement

Here are 5 reasons why you may consider working through retirement.

5 Times When an Annuity Might Be Right For You

5 Times When an Annuity Might Be Right For You

Dive in deep to learn about the various types of annuities, how they work, and when they might be right for you.