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 life. The policy outlines the terms, including what is covered, the amount of coverage, and any exclusions. It serves as a safeguard, ensuring that individuals can recover financially from unexpected events, such as accidents or natural disasters, by receiving compensation from the insurer when needed.