Insurance is a contract in which the insurance company agrees to compensate the insured for losses, damages, or injury in exchange for a premium, usually paid monthly. It's a form of risk management, protecting individuals and businesses from financial hardship due to unforeseen events. Essentially, it's a way to transfer the potential financial burden of risk to an insurance company.
More detailed explanation:
Risk Transfer:
The core function of insurance is to transfer the financial risk of a potential loss from the individual or entity to the insurance company.
Premiums:
In return for this protection, the insured pays regular premiums to the insurer.
Policy Coverage:
The insurance policy outlines the specific risks covered, the conditions under which the insurer will pay out, and the amount the policy covers.
Types of Insurance:
Health, home, auto, life, accident, critical illness, hospital indemnity, and more. Each insurance is designed to protect against specific risks.
Benefits:
Insurance can provide peace of mind, financial security, and access to healthcare, among other benefits.

Understanding Health Insurance: A deductible is the amount of money you need to pay before your insurance begins to cover costs. This amount is based on the policy you chose.

An out-of-pocket maximum refers to the cap, or limit, on the amount of money you have to pay for covered services per plan year before your insurance covers 100% of the covered services. Many health insurance plans, including individual and group plans, have a deductible and an out-of-pocket maximum.

HMO-Health Maintenance Organization: HMO provides or arranges managed care services for its members. It normally requires its members to choose a primary care physician (PCP) within its network.

PPO- Preferred Provider Organization: PPO offers a network of healthcare providers, but it allows its members to seek care outside of that network/ However, the member will h potentially pay higher costs.

EPO-An EPO is a type of health insurance plan that offers coverage only for in-network providers, except in emergencies. Members do not have to choose a PCP and can see any doctor in the network, and no referrals are needed for specialists. Deductibles and out-of-pocket may be lower compared to PPO.'s.

When choosing any insurance plan, make sure that it is suitable for your needs. Check the plan guidelines & benefits before finalizing.