Insurance

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.