Insurance is a financial product that protects against potential financial loss. It transfers the risk of loss from an individual or business to an insurance company in exchange for a premium payment. The types of insurance available include term and whole life insurance, annuities, health insurance, disability insurance, auto insurance, home insurance, and business insurance, among others.
Financial advisors can help individuals and businesses navigate the complex world of insurance by providing guidance on which types of insurance to purchase, how much coverage to obtain, and which insurance companies to work with. They can also help clients understand the fine print of insurance policies, such as riders, deductibles, and exclusions, and ensure they get the best coverage for their money and goals.