insurance

in·sur·ance   (ĭn-shŏŏr'əns)    n.   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. 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. adj.   Sports Of, relating to, or being a score that increases a team's lead enough to prevent the opposing team from tying the game with one more score: an insurance run.

insurance 

Insurance

A contract (policy) in which an individual or entity receives financial protection, or reimbursement, against losses from an insurance company, which pools client's risks to make payments more affordable, in exchange for a premium.

Investopedia Commentary

When shopping around for an insurance policy, look for the best priced package that is right for you - prices can vary from one insurance company to the next. And make sure you know what you want. Some individuals, for example, prefer 24-hour claims service, or face-to-face contact with an insurance representative. Also consider the claims settlement process, the amount of the deductible and the extent of the replacement coverage. Insurance companies and the policies they offer are not all the same, so think about more than just the price.

Related Links

Long-Term Care Insurance: Who Needs It?
Taking The Surprise Out Of Long-Term Care

See also: Contract Holder, Deductible, Hedge, Life Insurance, Permanent Life Insurance, Premium, Term Life Insurance, Universal Life Insurance, Whole Life Insurance Policy

Main Entry: in·sur·ance
Pronunciation: in-'shur-&ns, 'in-"shur-
Function: noun
1 : the action, process, or means of insuring or the state of being insured usually against loss or damage by a contingent event (as death, fire, accident, or sickness)
2 a : the business of insuring persons or property b : coverage by contract whereby for an agreed payment one party agrees to indemnify or guarantee another against loss by a specified contingency or peril c : the principles and practice of the business of insuring
3 : the sum for which something is insured