How insurance works

Although the terminology differs somewhat from country to country, the basic ideas of main insurance products such as car insurance and home insurance are universal.

Still, many people still feel that insurance is a complicated topic. The good news is that there are many useful online guides to insurance. Among the newest additions is one by the Financial Consumer Agency of Canada (FCAC), “Understanding Insurance Basics”.

This publication provides a definition of insurance, and explains how it works and why we might need it. So if you still find yourself asking the question “what is insurance?” then have a look at the guide.