What is the purpose of insurance?
To build wealth
To transfer risk
To manage assets
To build relationships



Answer :

Final answer:

Insurance is the transfer of risk for a fee to protect wealth and income.


Explanation:

Insurance serves the purpose of transferring risk from individuals to insurance companies in exchange for a premium. By purchasing insurance, individuals protect their wealth and income from unforeseen events that could lead to financial loss. Insurance allows for pooling risk among a group of people, enabling individuals to mitigate the financial impact of potential risks.


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