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

Preparing for the Expected

Preparing for the Expected

You can plan ahead to protect yourself and your family against the financial consequences of deteriorating health.

Trends in Charitable Giving

Trends in Charitable Giving

Some people may want a more advanced gifting strategy that can maximize their gift and generate potential tax benefits.

How to Read Your Credit Report

How to Read Your Credit Report

Solve a mystery while learning how important your credit report is with this story-driven interactive.