Insurance typically refers to a contract, represented by a policy, in which an individual or entity receives financial protection or reimbursement against losses from an insurance company. This protection is typically provided in exchange for regular payment of premiums. Insurance can cover various aspects of life, such as health, property, life, and others. It works on the principle of risk management, where the insured pays a relatively small premium to the insurer in exchange for the insurer's promise to compensate them for covered losses or events.