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.

Share |

Have A Question About This Topic?

Thank you! Oops!

Related Content

Redefining Retirement Planning

Redefining Retirement Planning

Millennials are redefining retirement planning.

How to Cut Your Expenses

How to Cut Your Expenses

Living with confidence means living within your means. managers.

Layers of Protection

Layers of Protection

Take these five steps to protect your financial well-being before making any other changes.