Insurance FAQ

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There are many questions about insurance that are frequently asked. Get answers to your life insurance frequently asked questions with help from a member of the California Department of Insurance Curriculum Board and insurance professional in this free video clip.

Part of the Video Series: Life Insurance & More
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Video Transcript

Hi, I'm Tony Steuer and this is my tip on general insurance frequently asked questions. Generally asked questions about insurance are: what is insurance. The basis of any insurance policy is to provide an offset against a particular risk. Let's say you insure your car. You're insuring against the risk of something happening to your automobile. The insurance company will pay for any damage to your car. The same applies to any other sort of insurance such as home insurance. Your home burns down, the insurance company pays the claim. Life insurance, something happens to a loved one, they pass away, the insurance company pays the claim. That's what insurance is about. You pay a small amount of money each period whether it be a month or annually and the insurance company pays a larger amount if something happens. How the insurance companies can provide those large amounts of money, let's say a $250,000 home for $500 a year in premiums is because they pull risk. They insure a whole group of people on the odds that only a certain number of people will need that insurance payout. I'm Tony Steuer and that was my tip on basic insurance frequently asked question. Thank you for watching.


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