Well, it's a big word!  It's something that everyone buys!  But it's not like a toy that you can play with, or food that you can eat....

Insurance is a piece of paper (actually a lot of papers), called an insurance policy.  It is an agreement (like when you make a deal with a friend).  

When you buy insurance, you pay money to an insurance company.  The insurance company agrees to pay if you have a loss (like a fire or a car accident).  The amount of money you pay depends on the type of insurance you need to buy and what chance you have of having a loss.

An insurance agent (like us!), works with people to help them decide what insurance they should buy, how much they should buy and what they can do to help prevent losses.

For example, you may pay more money to insure your car if you have had a ticket or an accident in the past; or, if your house is brick it will probably cost less than if it is built from wood, since brick will not burn as quickly.

All the money paid by everyone who buys a policy is kept together and when someone has a loss, they get paid for their damage so they can rebuild their home or fix their car.  There is also life insurance, medical insurance to pay for doctor and hospital visits and liability insurance in case you should cause someone to get hurt or damage someone's property.

This way, when one person has a fire, for example, there is money to rebuild their house or building.  They probably couldn't afford to rebuild without insurance.

Insurance has been around for a long time.  It gives you peace of mind!