Insurance is a financial arrangement that safeguards individuals and organizations from financial loss. By paying regular premiums, policyholders receive coverage for specific events like accidents, illnesses, or property damage. The main purpose of insurance is to lessen the financial impact of such incidents, enabling policyholders to recover without severe economic hardship. There are different types of insurance, such as life, health, auto, home, and business insurance, each designed to address specific risks. Through the collective contributions of policyholders, insurance establishes a shared risk system, creating a safety net for both individuals and businesses.