When you have a favorite toy, sometimes you might worry about it getting broken or lost. Insurance is like having a special friend who promises to help you if something happens to your toy. You give this friend a little bit of your allowance every week, and in return, they promise to help you replace or fix your toy if it ever gets damaged.
Think of insurance like a big umbrella. When it’s sunny, you don’t need the umbrella, but if it starts to rain, you’ll be glad you have it. The umbrella keeps you dry, just like insurance helps protect you from unexpected problems.
Another way to think about it is like a piggy bank that you and your friends share. Everyone puts a little bit of their money into the piggy bank. If one of your friends accidentally drops their toy and it breaks, you all agree to use the money from the piggy bank to help them get a new one. This way, no one has to worry too much because everyone is there to help each other.