用简单英语替你解读保险的好处

Insurance in Plain English

Bad things happen. And when they do, recovering can take time and money. Thankfully, we have help. This is Insurance in Plain English.

Let's say you're on a boat, when a wave comes from out of nowhere and knocks you into shark-infested waters. Events like this are difficult to predict, so the best thing you can do is have a way to recover quickly. Now falling off of a boat is just an example. In real life, events like your home burning down can be devastating. Recovering from these events requires a lot of money. Money that most people don't have. Thankfully, we have a way to recover from these big expenses. It's called Insurance.

Let's say your car gets caught in a storm. Suddenly you don't have a car or the money to fix it. Without insurance, you might have to borrow a bike to get to work. But with insurance, you'll have a way to get your car fixed or replaced.

It sounds too good to be true, right? Well, insurance comes with costs. To be protected, you buy it from an insurance company. When bad things happen, the company will help you recover by paying some of the expenses. Here's how our works. To get insurance, you talk with an insurance company about the things that are important to you. These are usually things like your health, your car, your home and  your family. You'll set up a plan or policy with the company that outlines how insurance will help when something bad happens.

For instance, a policy might outline when and how much an insurance company will pay when your car is wrecked, your home id flooded, or you can't work for a period of time. There are even policies that outline how your family will be protected if something happens to you. Insurance policies are very specific. It's important to understand exactly what a policy covers.

To have this kind of protection, you'll pay the insurance company over time. Even if you're healthy and your property is safe, you'll still pay on a regular basis. These payments are how insurance companies can afford to cover people like you. Here's what I mean. You are one of thousands who are paying the insurance company on a regular basis. The company takes this money and pools it together. When bad things happen to policy holders, the company has enough money to help them recover as outlined in the policy.

Of course, this means you may pay for insurance your whole life and never use it. Before you question the value, remember that insurance covers the big expenses caused by things that are out of your control. Without insurance, these things can come along and take away your hard-earned money.

Insurance is an important part of being responsible with your money and property. Talk with a company you trust about what's important to you. Take the time to ask questions, read the fine print and compare policies. Insurance won't keep you from falling in, but it will help you recover more easily when bad things happen.

I'm Lee LeFever and this has been Insurance in Plain English.