What Is Insurance?

00:58

Benefits 101

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This video simplifies the concept of insurance as a means of sharing financial risk among a large group of people:

  • Insurance is a financial risk-sharing mechanism among a large group.

  • Monthly premiums from millions of people are pooled together to cover costs for those members who incur losses.

  • This system enables individuals to have substantial coverage without the need for large out-of-pocket expenses in the event of an accident.