ABSTRACT
Risk, in the context of the insurance arena, can also encompass the possibility of a variation from the actual expected result of something. The function of insurance is to transfer risk. When you purchase an insurance product, you are transferring risk from yourself to the insurance company. This chapter focuses on some insurance products that could relate to one's personal finances, they are health insurance, home insurance and annuities. Health insurance is something that young, freelance people often go without in order to save money. A form of home insurance can be purchased both by people who own their homes and by renters. Annuities are products sold by insurance companies that resemble financial products. They are an insurance contract that is designed to provide payments to the holder at specified intervals, usually for a fixed period, during the holder's life.
