Insurance is a financial product that shields individuals or entities from specific risks in exchange for premium payments. It operates on the principle of risk pooling, spreading potential losses across a larger group. Policies outline terms, coverage, and exclusions, with premiums paid regularly. Coverage spans various areas like life, health, property, liability, and auto. A deductible, the amount paid before coverage applies, influences premiums. Claims are filed to receive compensation for covered losses, with insurers conducting investigations. Underwriting assesses risks associated with potential policyholders, determining premiums and coverage. Insurance provides crucial financial security, mitigating uncertainties for individuals and businesses alike.