A legal contract in which the insurer (e.g., insurance company) agrees to compensate the insured (the policyowner) for unexpected losses. In return, the insured pays premiums to the insurer.

There is personal (or individual) insurance and group insurance.

Personal Insurance

There are different kinds of personal insurance

• annuities
• health insurance
• life insurance
• segregated funds

Uses Of Insurance

Insurance is used for

• premature death (life insurance)
• loss of health (health insurance, critical illness insurance)
• loss of income (disability insurance)
• retirement insurance (life annuities)

Learn more about personal and corporate risks.

Life insurance can also be used as collateral for a loan.