The Insurance Primer

This web site is about insurance and the most common types that we all need to know about. Each section will present the basics in as few words as possible, mixed in with a few examples to make things clearer. We'll cover the basic types of insurance that may of us need; Life, Health, Homeowners, Disability and Auto, and look at some of the major aspects of each.

Insurance companies hire teams of attorneys to write policies and use pages of fine print to define their coverage. We can't begin to explain everything, but we'll try to cover the important points. Use this site as a primer, then do your own research or work with a trusted agent. The Insurance Primer is not a buyer's guide and isn't affiliated with an insurance company, agency, or brokerage.

Throughout your readings, keep in mind that the primary purpose of insurance is to protect against the financial impact of a tragedy, serious stuff like an illness, car accident, or death of a spouse. It's a way to share risk with others. Although some may use insurance as an investment or for tax benefits, these topics are not covered in this primer.

The questions to ask with any insurance purchase should be... do I need it, can I afford it, or does the salesperson just want to sell it, followed by how much do I need and where to buy it. We'll try to help you by providing the basic knowledge that you need for answers.

 

In 1752, Benjamin Franklin and a group of Philadelphians created the first North American property insurance company and named it "The Philadelphia Contributionship for the Insurance of Houses from Loss by Fire". His company refused to insure some buildings with a high fire risk, including all wooden houses.