What does an insurance policy typically cover?

An insurance policy primarily serves to provide financial protection against specific risks or events that may occur during an individual’s life. By covering life events, an insurance policy can address various scenarios, such as the death of the insured, providing financial support to beneficiaries, or even covering certain life milestones, depending on the type of policy. This aligns with the principle that insurance is designed to mitigate the financial impact associated with unforeseen life changes.

While other options like legal fees, medical expenses, and property damage can be associated with certain types of insurance policies, they are not universally covered by all insurance policies. For example, legal fees are typically covered under liability insurance rather than life insurance. Medical expenses are associated with health insurance, not life insurance. Property damage is specifically tied to homeowners or auto insurance. Therefore, focusing on life events encapsulates a broad range of scenarios that insurance policies are designed to address, particularly in the context of life insurance.