Insurance is a financial arrangement that offers protection against unforeseen events. It involves an individual or entity (the policyholder) paying regular premiums to an insurance company in exchange for coverage against specific risks.

Life Insurance: This provides a payout to beneficiaries upon the policyholder’s death. It can be term life (for a specific period) or whole life (covers the insured’s entire life).

Health Insurance: It covers medical expenses, including hospitalization, doctor’s visits, and prescription drugs.

Auto Insurance: Mandatory in many places, it covers damage to vehicles and liability for accidents.

Homeowners/Renters Insurance: Protects against damage or loss of property, including personal belongings.