Insurance A text-only version of this complete section, designed for printing, is available here .
Insurance is protection against unwelcome events.
It is usually in the form of an annual payment to an insurance company. The policy needs to be renewed each year. You may not need to claim under the policy so the price, or premium, you have paid will have bought you only the protection for the year. The events you are insuring against normally have adverse financial consequences. These can be large or small.