Life & Health · Chapter 2 · Risk Types & Insurability
Risk
Definition
The uncertainty or potential of loss. Two types: pure risk (loss only — insurable) and speculative risk (loss OR gain — not insurable).
In plain English
Risk isn't the bad thing itself — it's the not-knowing whether the bad thing will happen.
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