insurance

Definition
A promise of recompense for detailed probable future losses in exchange for a episodic payment. Insurance is designed to save from harm the financial well-being of an individual, company or other entity in the case of surprising loss. Some forms of insurance are required by law, while others are optional. supportive to the terms of an insurance policy creates a contract between the insured and the insurer. In exchange for payments from the insured (called premiums), the insurer agrees to pay the policy holder a sum of money upon the happening of a specific event. In most cases, the policy holder pays part of the loss (called the deductible), and the insurer pays the rest. Examples include car insurance, health insurance, disability insurance, life insurance, and business insurance.