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.

Have A Question About This Topic?

Thank you! Oops!

Related Content

Volunteering in Retirement

Volunteering in Retirement

For many, retirement includes contributing their time and talents to an organization in need.

The Lowdown on Those Free Credit Scores

The Lowdown on Those Free Credit Scores

What’s the deal with your yearly free credit report?

Keep Your Life Insurance When You Retire

Keep Your Life Insurance When You Retire

This article is perfect for those looking to maintain their life insurance or explore alternate options during retirement.