The basic purpose of insurance is to:
A) protect the health of you and your family.
B) protect you and your family from financial losses .
C) supplement the income of you and your family.
D) shield you and your family from bad decisions.
E) protect you and your family from nonfinancial losses.

Question

Quizplus · Accepted Answer

The basic purpose of insurance is to protect you and your family from financial losses due to unexpected events such as accidents, illnesses or natural disasters. It provides financial security and peace of mind by transferring the risk from an individual to an insurance company in exchange for a premium. While some types of insurance, such as health or disability insurance, may also protect your health, the primary purpose is always financial protection. Therefore, option B is the best choice.

The Basic Purpose of Insurance Is To