Life is made up of various risks. We live with those risks every day. Some risks are easier to recognize than others, like the risk of being pulled over by a cop vs. getting to your destination faster when we drive too fast. Some risks are less apparent but can be financially catastrophic if they happen. For those less apparent risks, there are insurance products.
Car Insurance helps ease the risk of having to incur the entire cost of repairing cars after an accident.
Life Insurance helps ease the risk of family members being left in financial straits after the passing of a loved one.
Income Protection Insurance (also known as Disability Insurance) helps ease the risk of financial ruin while recovering from an unexpected illness or injury that keeps you from earning money.
For each of these risks, there is a possibility of financial disaster, insurance is there to take some of the unknown risks we incur every day, just by living, and transfers some of it to a company willing to take that risk on.