To put it straight, insurance is a contract between an individual (policyholder) and an insurance company to protect against potential financial losses. In exchange for a premium (regular payment), the insurance company agrees to cover certain risks, such as medical bills, car accidents, or home damage. You may already know the types of insurance, including health, life, auto, and property insurance. Insurance helps reduce the financial burden in unexpected events, offering peace of mind and financial support when accidents or other covered events occur.