Insurance is a financial arrangement that provides protection against potential future losses or damages. It involves the transfer of risk from an individual or entity to an insurance company, which in return collects premiums. This system helps individuals and businesses manage uncertainty and financial burdens associated with unexpected events. There are various types of insurance, including Health Insurance, which covers medical expenses, and Life Insurance, which provides financial support to beneficiaries after the policyholder's death. By paying regular premiums, policyholders can ensure they are safeguarded against significant financial risks.