What is Insurance? We Built a Better Way to Answer Your Questions.

What is Insurance?

It’s the most Googled question on the entire subject, typed into search bars millions of times a year by people at a crossroads in their lives: "What is insurance?"

It sounds simple. But for most people, this question is the start of a confusing, overwhelming journey. You’re getting your first car, moving into a new apartment, starting a family, or launching a business, and you know you need it.

So you search for the answer. And you’re immediately confronted with this:

The "Official" Answer (The Wall of Text)

What is insurance?

Insurance is a contract between you (or a business) and an insurance company to help protect you and your loved ones from financial loss due to an unexpected event, like an accident, illness, natural disaster, or other unexpected circumstances. In the case of medical, dental or vision insurance, it can also help keep you or your family healthy by offsetting —and sometimes covering — the cost of routine care.

The insurance contract itself is called a policy. The policy outlines who or what will be covered under the contract, the circumstances for which payment will be issued by the insurance company, who will receive the payment, and how much they will receive.

Key takeaways:

• Insurance is a contract between an individual or business with an insurance company to help provide financial protection and mitigate the risks associated with certain situations or events.
• There are various types of insurance available, including health, dental and vision, life, auto, and legal insurance.
• Key components to consider when comparing insurance policies are the deductibles, premiums, and policy benefits.
• During open enrollment, you may be able to get certain types of insurance — like dental, vision, and health — through your employer or government marketplace.

Why is insurance important?

Insurance helps to financially protect you, your dependents and your assets from emergencies, unexpected expenses, and losses. It mitigates risk by transferring potential financial burdens to providers in exchange for regular (typically monthly) payments known as premiums. An insurance policy can help you cover expenses related to routine healthcare, property damage from a natural disaster, or veterinary costs when your pet gets sick.

Overall, the purpose of insurance is to help provide security, stability, and support in times of need. Having insurance may allow you to live your life with fewer worries, knowing you have a financial safety net in place.

How does insurance work?

To put it simply, you pay a premium (usually in the form of a monthly payment) to your insurance company, and in exchange, the company will help pay for any covered accidents, routine wellness visits, and many other situations. Once you’re enrolled in your plan and it has taken effect, you’re covered until you stop paying your premiums or your policy ends. Whether you go to a routine doctor’s visit, experience damage to your home or car, or just need your teeth cleaned, your insurance company will help pay for services that fall under the scope of their coverage — either by reimbursing you directly or paying the service provider. However in some instances, before you receive reimbursement from your insurer, you’ll first need to reach your deductible.

Filing a claim

Some circumstances require you to file a claim to collect any money. That means if something happens, you’ll have to submit a request to your insurance company to receive a payout. Information on how to file a claim is typically in your policy documents. In some cases, the service provider you visit — e.g., your doctor, dentist, therapist, etc. — will handle communications directly with the insurance company.

Did You Read All of That? Be Honest.

If you skimmed it, you’re not alone. If your eyes glazed over, that’s perfectly normal.

Here’s the problem: All of that information is 100% correct. And it's 100% necessary. Insurance is a complex legal contract, and these details do matter.

But the format is the problem.

That "wall of text" is the old way of doing things. It’s impersonal, overwhelming, and one-size-fits-all. It treats you—a unique individual with specific needs—the same as every other person who lands on the page.

Are you a 22-year-old in Chicago looking for the cheapest possible auto insurance? Are you a 45-year-old new parent in Texas trying to understand life insurance? Are you a 64-year-old in Florida wondering about supplemental health coverage for retirement?

The "wall of text" doesn't care. It forces all of you to wade through the same definitions of pet insurance, legal insurance, and hospital indemnity coverage. It forces you to learn an entire glossary of terms—premium, deductible, copay—before you even know what product you need.

This is the old model. It’s broken. That’s why we’re changing how we answer your questions.

Stop Reading. Start Interacting.

Your life isn't a static FAQ page, so your insurance education shouldn't be either.

We know that the real challenge isn't just defining insurance; it's understanding how it applies to you. That’s why we’ve begun moving our entire customer education and enrollment process to a new interactive video platform.

Instead of forcing you to read a glossary, we let you learn on demand. Instead of making you scroll past irrelevant options, we let you build your own path.

Here’s how we’re solving the three biggest problems with the "wall of text."

Challenge 1: The Glossary Problem ("Insurance Terms You Need to Know")

The old way forces you to become a student before you can become a customer. You're presented with a list of intimidating terms you're somehow supposed to memorize.

The Old Way (A Pop Quiz):

• Insurer: the insurance company providing the insurance policy
• Policyholder: the person named on the policy
• Policy limit: the maximum amount of money an insurance provider will pay out
• Premium: the payment you make to the insurance company to keep your policy active
• Deductible: the amount of money you’re responsible for paying out of pocket before insurance will pay out
• Coinsurance: a percentage of costs you pay after meeting a deductible
• Copay: a flat fee you pay each time insurance is used
• Claim: a formal request for an insurance company to cover payments

This is overwhelming. You haven't even decided on a plan, and you're already drowning in terminology.

The New Way (Just-in-Time Learning):

Imagine you're in our new interactive video portal. A friendly guide is walking you through a sample health plan.

The guide says, "Your monthly premium is the key to keeping your plan active."

As she says "premium," a small, pulsing [?] icon appears over the word. You’re curious. You click it.

The main video pauses. A 20-second animated "micro-video" pops up. It visually shows a calendar with a dollar sign on the 1st of every month, with the money moving from a wallet to the insurance company's logo. A clear voiceover says, "A premium is the fixed, regular payment you make to keep your insurance policy active. Think of it like a subscription."

You click "Close" and you're right back in the main video, never having lost your place.

A minute later, the guide says, "You’ll have to meet your deductible before the plan pays 100%."

That [?] icon appears again. You click it. The pop-up video now shows a large, empty cup labeled "$2,000 Deductible." Small dollar bills fly in from your wallet as you "pay for a doctor's visit" or "fill a prescription." The cup slowly fills. Once it's full, a large check from the insurance company flies in to pay for the next expense.

The visual makes it click in an instant. You've learned the two most important terms, premium and deductible, in context and when you needed them—without ever opening a new tab. This "just-in-time" learning applies to every term, from copay to coinsurance, turning a scary glossary into a simple, on-demand tool.

Challenge 2: The Relevancy Problem ("Types of Insurance")

The old way assumes you have unlimited time and patience. It presents you with a massive, unfiltered list of every product on the market, forcing you to do the work of finding the one you need.

The Old Way (The Endless List):

• Health insurance: helps cover medical expenses...
• Dental insurance: often helps cover dental expenses...
• Vision insurance: typically covers routine eye exams...
• Legal insurance: provides access to a network of attorneys...
• Life insurance: pays a set amount to a beneficiary...
• Accident insurance: pays out a lump sum in the instance of...
• Disability insurance: provides a portion of income payments...
• Auto insurance: helps cover collisions, property damage...
• Homeowners insurance: helps cover damage to your home...
• Critical illness insurance: helps provide financial assistance...
• Hospital indemnity insurance: helps pay expenses related to...
• Pet insurance: often covers veterinary costs...

You're that 22-year-old looking for auto insurance. You had to read or scroll past seven irrelevant types of insurance just to find the one you were looking for. You’ve wasted time and mental energy, and you're already frustrated.

The New Way (The Personalized "Choose Your Own Adventure"):

With our interactive video platform, your journey starts with a simple, human question.

The video guide smiles and asks, "Welcome! To get you the right information, what's most on your mind today?"

Four clickable buttons appear on the screen:

1. [ Protecting My Health & Wellness ]
2. [ Protecting My Car, Home & Property ]
3. [ Protecting My Family's Future ]
4. [ I'm an Employer Exploring Benefits ]

You're that 22-year-old. You click [ Protecting My Car, Home & Property ].

Instantly, the video uses video branching to jump to a new path. The guide continues, "Great. Let's talk about property. Are you looking to insure a vehicle, a home, or both?"

You click [ A Vehicle ].

Now, you are on a custom-built path. The video you are watching is 100% about auto insurance. It completely skips all the content on health, life, and pet insurance. It explains what auto insurance covers (collisions, storm damage, etc.), it uses the on-demand glossary to explain deductibles and premiums as they relate to your car, and it guides you to the next logical step.

This isn't just a video; it's a guided consultation.

Challenge 3: The Action Problem ("How to Choose & Get Insurance")

This is where the old way fails the hardest. After dumping 2,000 words of definitions on you, it ends with the most generic, unhelpful advice possible.

The Old Way (The Vague To-Do List):

• "...consider your needs and specific circumstances."
• "...assess the types of coverage you require..."
• "...research and compare insurance providers..."
• "...consult with an insurance professional or agent."
• "...reach out to your company's HR department."

This is the equivalent of a GPS telling you, "To get to your destination, drive your car on some roads." It's not wrong, but it's not helpful. It creates more work for you.

The New Way (From Learning to Doing, Instantly):

Let's go back to your personalized auto insurance video path. You've learned what it is and what the terms mean. The video doesn't end with "Now go research." It moves you to the next step.

The guide asks, "Now that you know the basics, let's find the right fit. When it comes to auto insurance, what's most important to you?"

An in-video quiz appears:

1. [ The lowest possible monthly payment. ]
2. [ The lowest out-of-pocket cost if I have an accident. ]
3. [ A balance between the two. ]

You think about your budget and click [ The lowest possible monthly payment. ]

The video branches again. "Got it. A 'high-deductible' plan will likely give you the lowest monthly premium. This is a great choice if you're a safe driver and want to keep your fixed costs down."

It has just acted on your choice. It's not generic advice; it's a personalized recommendation.

And it doesn't stop there. The video's final, interactive Call to Action (CTA) appears over the video:

"You're ready. Let's see your personalized rate. It only takes 3 minutes."

[ Get My 3-Minute Auto Quote ]

You click the button inside the video player, and you're taken directly to a pre-filled quote form. You've gone from "What is insurance?" to "Here is my personalized quote" in one seamless, interactive session.

The Real "Aha!" Moment: Upselling & Cross-Selling as Helpful Guidance

This new way of communicating also transforms the part of insurance everyone hates: the "upsell."

The old way of upselling is a generic, annoying email blast: "Don't forget to add dental insurance!" or "Have you considered life insurance?" It feels like a pushy sales pitch because it's not relevant to you right now.

The New Way is to solve your next problem, right when you have it.

This is most powerful for our existing customers. Your life is not static. It changes. And when your life changes, your insurance needs change. These are called Qualifying Life Events (QLEs).

Imagine you're an existing customer with an auto and renters policy. You log in to your portal to pay your bill. A new interactive video greets you:

"Welcome back, [Your Name]! We want to make sure your coverage still fits your life. Have you had any major life events recently?"

• [ I've moved or bought a home ]
• [ I've gotten married or divorced ]
• [ I've had or adopted a child ]
• [ My job situation has changed ]
• [ Nope! No changes, just paying my bill. ]

You just welcomed a new baby. You're curious, so you click [ I've had or adopted a child ].

The video branches to a new, specific path. The guide says, "Congratulations! That is wonderful news. As your family grows, this is the perfect time to think about protecting their financial future. The two most common questions new parents ask are about Life Insurance and Disability Insurance."

"Which would you like to learn about first?"

[ What is Life Insurance? ] [ What is Disability Insurance? ]

You click [ What is Life Insurance? ]. A 2-minute "micro-learning" video plays, explaining what term life insurance is and why it's critical for a new parent (to cover the mortgage, future college costs, etc.).

It’s not a sales pitch. It's a "just-in-time" answer to a new problem you are actually facing. At the end of this 2-minute video, the "upsell" is reframed as a helpful next step:

"A $500,000 term life policy can cost as little as a few streaming subscriptions per month. Would you like to see your personalized 60-second rate?"

[ Yes, See My Rate ] [ No, I'm Just Looking ]

This is the future. It’s not an "upsell"; it's a guided consultation. It's relevant, respectful, and puts you in control.

Conclusion: Stop Reading. Start Interacting.

Insurance is, and always will be, a contract. It will always have complex terms, conditions, and limits. That is the nature of a financial safety net.

But understanding it shouldn't feel like a final exam.

The "wall of text" you find everywhere else is a sign of respect for the topic, but it's a sign of disrespect for your time. We're choosing to respect your time.

We are turning our static library of answers into a dynamic, two-way conversation. No more endless scrolling. No more confusing glossaries. No more one-size-fits-all solutions.

Just get the answers you need, when you need them—and skip the rest.

Ready to experience a smarter, simpler way to understand insurance? Explore our new Interactive Video Hub to get your questions answered and find the perfect plan in minutes.