What is insurance?
Insurance transfers risk from you to the insurance company. The company pays a claim if a covered event occurs. While not fun, insurance is necessary and sometimes legally required.
What can be insured?
Almost everything…
Key Terms
- Premium: Payment to maintain a policy (monthly, semi-annually, annually)
- Deductible: Amount you pay before the policy pays
- Term: Policy duration
- Beneficiary: Person receiving policy payment
- Claim: Request for payment
- Limits: Maximum amount the company pays on a claim
- Rider: Amendment or addition to a policy (e.g. child or jewelry rider)
Assess Your Risk
Consider where to transfer risk. Can you afford a house fire out of pocket? If not, homeowner's or renter's insurance is essential.
Some insurances, like car insurance, are legally required with minimum coverage.
MUSC students may self-enroll in our Brightspace Financial Literacy Course to explore more on car, disability, health, home, life malpractice, and umbrella insurance.
