Insurance is a contract, represented by a policy, in which a policyholder receives financial protection or reimbursement against losses from an insurance company. The company pools clients’ risks to make payments more affordable for the insured. Most people have some insurance for their car, house, healthcare, or life. Insurance policies hedge against financial losses resulting from accidents, injury, or property damage. Insurance also helps cover costs associated with liability for damage or injury caused to a third party. The core components that make up most insurance policies are the premium, deductible, and policy limits
. An insurance policy is a written contract between the policyholder and the insurer. It helps manage financial risks by providing protection against unexpected financial losses. Insurance companies pay the policyholder or someone chosen by the policyholder if something bad happens
. Health insurance plans cover essential health benefits, including ambulatory patient services, emergency services, hospitalization, pregnancy, maternity, and newborn care, mental health and substance use disorder services, prescription drugs, rehabilitative and habilitative services and devices, laboratory services, preventive and wellness services, and pediatric services. Some states require insurers to cover additional services and procedures
. When choosing a health insurance plan, it's important to consider the "metal" categories, total costs for health care, and plan and network types
. An insurance policy is a legal contract between the insurance company and the insured. It consists of four basic parts: the declaration page, insuring agreement, exclusions, and conditions. The declaration page identifies the insured, the risks or property covered, the policy limits, and the policy period. The insuring agreement summarizes the major promises of the insurance company and states what is covered. Exclusions take coverage away from the insuring agreement, while conditions explain the rights and duties of the insured and the insurance company
