How Do Insurance Companies Work?
Video Transcript How Do Insurance Companies Work? Hello, my name is Vic Schumacher and I’m with HPE Financial Services. I’m an insurance broker and someone asked me how do insurance companies work? That’s a pretty generalized question. Let’s go back to the idea of insurance first of all. Insurance is nothing more than replacing an unknown with a sense of security. Insurance companies try to make you feel more comfortable. In doing so, you will pay them a premium, a certain dollar amount, so as to help protect something for a period of time. The insurance companies will ask you how long do you want this protection to last, how many months or how many years. We’re talking very generically here, and then you will tell them I want it to last, let’s just say five years. And the value of what you are trying to protect is a certain dollar amount. They in turn will come back to you and say the odds of something happening are whatever they are and they will charge you a certain amount in the ev
