A product that a person or business buys, typically through monthly payments, that provides financial protection against risks. The monthly payments, called premiums, are made by a large group, which spreads out the risk for the company issuing the insurance. Losses are paid for from premium revenue that has been invested to earn a return that will cover the insurance companyÂ’s expenses and produce a profit. Consumers can buy insurance to protect against financial loss due to health issues, car accidents, damage to a home, and to protect against the negative financial effect of a relativeÂ’s death, among other things. Businesses can buy insurance to protect their property against damage and theft and to protect themselves against liability.