What is insurance?

Question

What is insurance?

Answer 1

Wikipedia defines INSURANCE as a form of risk management primarily used to hedge against the risk of a contingent loss. Insurance is defined as the equitable transfer of the risk of a loss, from one entity to another, in exchange for a premium. Insurer is the company that sells the insurance.

Answer 2

Bottom line - insurance is betting that you will have an accident or loss in your life that someone will then help pay for.

Answer 3

NOUN:

The act, business, or system of insuring.

The state of being insured.

A means of being insured.

Coverage by a contract binding a party to indemnify another against specified loss in return for premiums paid.

The sum or rate for which such a contract insures something.

The periodic premium paid for this coverage.

A protective measure: biking helmets that provide insurance against a head injury