Insurance is a means of protection from financial loss resulting from an unexpected event. Insurance plans are contracts between an individual or business and an insurer, wherein the policyholder pays a premium in exchange for the insurer's promise to pay for any losses covered by the plan.
There are many different types of insurance plans available, including auto, homeowners, health, life, disability, long-term care, and more. Each type of insurance covers specific risks or losses, such as damage to a vehicle, loss or damage to property, medical expenses, death, or the inability to work due to illness or injury.
Insurance plans can help policyholders avoid financial ruin in the event of an unexpected accident, illness, or disaster. By spreading the risk among many policyholders, insurers are able to offer protection at a reasonable cost.