Insurance is a financial product that provides protection against potential losses or damages. When individuals or businesses purchase insurance, they pay a regular fee called a premium. In return, the insurance company agrees to cover certain risks, such as accidents, health issues, or property damage, depending on the type of policy. There are various types of insurance, including health insurance, auto insurance, and homeowners insurance. Each type serves a specific purpose, helping to mitigate financial burdens that can arise from unexpected events. By spreading the risk among many policyholders, insurance companies can offer support when needed, ensuring greater financial security for everyone involved.