What is Insurance?
Insurance helps you protect the things you own. It pays to fix or replace your things if they get broken or something happens to them. If someone steals your bike, insurance might help you buy a new one.
Insurance companies promise to pay people money when things get damaged or when people get hurt or sick. The companies make these promises in papers called insurance policies. To get these promises, people pay money, called premiums, to the companies.
There are many kinds of insurance. People can buy insurance for their houses and cars. They can buy health insurance to pay doctor bills if they get sick. You can even get insurance for your pet!
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