What do you mean by insurance? Insurance is a contract, represented by a policy, in which an individual or entity receives financial protection or reimbursement against losses from an insurance company. The company pools clients' risks to make payments more affordable for the insured.What are the 4 types of insurance? Different types of general insurance include motor insurance, health insurance, travel insurance, and home insurance.What is insurance simple words? Insurance is a term in law and economics. It is something people buy to protect themselves from losing money. ... In exchange for this, if something bad happens to the person or thing that is insured, the company that sold the insurance will pay the money back.