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Insurance

Insurable risk

Insurance is a crucial component of financial planning, providing protection against potential risks. Some risks, however, are easier to insure than others. In order for insurance to be attainable, the risk must be clearly defined, accidental in nature, and part of a larger group of similar risks. Additionally, the insurance company must be able to establish a reasonable price for the coverage. These factors ensure that the risk is both feasible and predictable, making it a viable option for insurance.
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