We can do this by entering into a contract that costs a little each month as protection against a possible loss. People might never have enough money to rebuild their home if it burned, so they pay a company each month to assume that risk. When thousands of others do this, they receive the protection People seek at a low cost. Transferring risk may sound easy. All People need is to find the right policy, for the right need, at the right cost. Write a check once a year and hope nothing happens. Of course, it is more complicated than this. When people retire, they must find policies that cover new risks or close gaps in existing ones. Policies can be deceptive. People may think they are fully covered when they are not. There are sometimes exclusions that limit their policy. Also, People must consider cost. It’s impossible to live with style if they spend all their discretionary income on insurance premiums.