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

Keep Your Life Insurance When You Retire

Keep Your Life Insurance When You Retire

This article is perfect for those looking to maintain their life insurance or explore alternate options during retirement.

Charitable Giving: Smart from the Heart

Charitable Giving: Smart from the Heart

Do you have causes that you want to support with donations?

Short Term vs. Long Term Disability Insurance

Short Term vs. Long Term Disability Insurance

From covering broken bones to chronic illness, here's what you need to know when it comes to your disability insurance options.