An insurance policy is a contract between an individual and an insurance company that provides financial protection against specific risks. In exchange for regular payments, known as premiums, the insurer agrees to cover certain losses or damages, such as those related to health, property, or vehicles. Policies can vary widely in terms of coverage, exclusions, and limits. Common types include health insurance, auto insurance, and homeowners insurance. Understanding the details of a policy is essential to ensure adequate protection and to know what is covered in case of an unexpected event.