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Hey Dad, what is insurance? I heard you and mom talking about it
Come on, Sweetie. Let's go inside and we'll talk about it.
When you get insurance, you pay a company money to assume certain risks. There are many different types of insurance.
What kinds will I need when I'm older?
Homeowner's insurance is important if you own your house. It covers both the structure and contents. It is expensive, though. There are often high premiums and high deductibles
Renter's insurance is similar, but since the renter does not own the home, they only insure their belongings.
Automobile insurance is required by law, and there are different kinds such as liability, collision, and comprehensive insurance. The different types cover different things. You have o pay a premium and a deductible, though.
Life insurance is something else you may need, but be careful. It can be VERY expensive if you are elderly or have health issues. You pay the insurance company money, and they give money to your beneficiaries when you die.
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