Insurance Basics for Your Household
Protecting What You've Built · 14 min
Lesson
In progress
Insurance transfers risk of a large loss to an insurer in exchange for a smaller, predictable premium.
Core coverage types for most households: health, auto (if you drive), renters or homeowners, and life if you have dependents.
A coverage gap is any risk large enough to derail your finances that isn't currently insured.
Key takeaways
- Insurance transfers large, unpredictable risk for a small predictable cost.
- Most households need health, auto/home/renters and sometimes life.
- Identify gaps before shopping for policies.
Glossary
- Premium
- The amount you pay, usually monthly or annually, for insurance coverage.
- Deductible
- The amount you pay out of pocket before insurance coverage kicks in.