Meaning & Definition of word "Insurance"
Insurance
/ɪnˈʃʊərəns/
noun:
- 1. A contractual agreement in which an individual or entity receives financial protection or reimbursement against losses from an insurance company.
- Example: She purchased health insurance to cover her medical expenses.
- 2. The act, system, or business of insuring, which involves the pooling of risks to mitigate losses.
- Example: The insurance industry has been growing rapidly in recent years.
- 3. An arrangement where a premium is paid in exchange for financial protection against specified contingencies.
- Example: Auto insurance is mandatory in many states to safeguard against accidents.
- 4. A promise of compensation for specific potential losses, such as life insurance, property insurance, and liability insurance.
- Example: He took out life insurance to secure his family’s financial future.
Etymology
●From Latin 'securare', meaning 'to make safe'.
Common Phrases and Expressions
insurance policy:
A document detailing the terms of an insurance agreement.
under insurance:
A situation where the coverage is insufficient to cover potential losses.
life insurance:
A type of insurance that pays out a sum of money upon the insured's death.
travel insurance:
Coverage designed to protect against risks while traveling.
Related Words
insurer:
A company or entity that provides insurance coverage.
insured:
A person or entity covered by an insurance policy.
premium:
The amount paid for an insurance policy.
claim:
A request for payment from an insurer for an insured loss.
Slang Meanings of insurance
Meaning: Insure
● Example Sentence: You better insure that car if you want to drive it around here.
Meaning: Coverage
● Example Sentence: I got full coverage on my ride after that accident.