Life & Health · Chapter 2 · Perils, Losses & Hazards
Peril
Definition
The immediate, specific event that CAUSES a loss. Property: fire, lightning, windstorm. Health: illness and accidents. Life insurance: the covered peril is mortality (premature death); annuities protect against outliving your assets.
In plain English
The peril is the thing that actually happens — the fire, the crash, the death.
Exam tip
Peril = CAUSE of loss. Hazard = condition that makes the peril MORE LIKELY. Classic exam pairing.
Easy to confuse with
These are what this term gets tested against — if you can't tell them apart cold, drill the contrast.
Related terms