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Insurance Pool

Insurance Pool

​Is the money you pay for insurance set aside just for you, to cover any claims you have? Simply put – no.

​There is no insurance “account” building up with your name on it. But don’t worry. You’re still covered.

Every year, your insurance premiums go into a pool along with premiums paid by other policyholders. Insurers use that pool to pay the claims of the few people who suffer an insured loss. 

The payments of many cover the losses of a few. That’s called “spreading the risk.”