Insurance plans are agreements between individuals and insurance companies that provide financial protection against specific risks. When a person pays a regular fee, known as a premium, the insurance company agrees to cover certain costs, such as medical expenses, property damage, or loss of income, depending on the type of insurance. There are various types of insurance plans, including health insurance, auto insurance, and homeowners insurance. Each plan has its own terms, coverage limits, and exclusions, which outline what is and isn’t covered. Understanding these details helps individuals choose the right plan for their needs.