Insurance is a contract where you pay a little money at a time so you can be compensated later, especially in the case of a disaster.

Many people consider insurance to be making a kind of bet that bad things will happen: that's a good bet to make, because nobody is lucky forever. Legally, you need car insurance to drive. Without medical insurance, a serious illness could leave you broke. Life insurance is important so your family gets support when you die. House or apartment insurance will help if you have a fire. Insurance agents sell insurance policies, and they always have lots of customers.

Definitions of insurance

n protection against future loss

Type of:
protection, shelter
the condition of being protected

n promise of reimbursement in the case of loss; paid to people or companies so concerned about hazards that they have made prepayments to an insurance company

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a British term for some kinds of insurance
automobile insurance, car insurance
insurance against loss due to theft or traffic accidents
business interruption insurance
insurance that provides protection for the loss of profits and continuing fixed expenses resulting from a break in commercial activities due to the occurrence of a peril
insurance issued jointly by two or more underwriters
fire insurance
insurance against loss due to fire
group insurance
insurance that is purchased by a group (such as the employees of a company) usually at a reduced rate to individual members of the group
hazard insurance
insurance that provides protection against certain risks such as storms or fires
health insurance
insurance against loss due to ill health
liability insurance
insurance that provides protection from claims arising from injuries or damage to other people or property
life assurance, life insurance
insurance paid to named beneficiaries when the insured person dies
malpractice insurance
insurance purchased by physicians and hospitals to cover the cost of being sued for malpractice
sharing the risk by insurance companies; part or all of the insurer's risk is assumed by other companies in return for part of the premium paid by the insured
insuring yourself by setting aside money to cover possible losses rather than by purchasing an insurance policy
term insurance
low-cost insurance that is valid only for a stated period of time and has no cash surrender value or loan value
no fault automobile insurance, no fault insurance
a system of automobile insurance where a party who is injured in an automobile accident recovers damages up to a specific amount against his own insurance company regardless of who was responsible for the accident
hospitalization, hospitalization insurance
insurance that pays all or part of a patient's hospital expense
endowment insurance
life insurance for a specified amount which is payable to the insured person at the expiration of a certain period of time or to a designated beneficiary immediately upon the death of the insured
tontine, tontine insurance
a form of life insurance whereby on the death or default of a participant his share is distributed to the remaining members
ordinary life insurance, straight life insurance, whole life insurance
insurance on the life of the insured for a fixed amount at a definite premium that is paid each year in the same amount during the entire lifetime of the insured
HMO, health maintenance organization
group insurance that entitles members to services of participating hospitals and clinics and physicians
Type of:
protection, security
defense against financial failure; financial independence

n written contract or certificate of insurance

insurance policy, policy
floater, floating policy
an insurance policy covering loss of movable property (e.g. jewelry) regardless of its location
Type of:
a binding agreement between two or more persons that is enforceable by law

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