What Is Insurance?

Most people have some kind of insurance: for their car, their house, or even their
life. Yet most of us don’t stop to think too much about what insurance is or how it
works.

Put simply, insurance is a contract, represented by a policy, in which a

policyholder receives financial protection or reimbursement against losses from an
insurance company. The company pools clients’ risks to make payments more
affordable for the insured.