What is the the meaning of insurance?

Insurance is an arrangement by which a company or the state undertakes to provide a guarantee of compensation for specified loss, damage, illness, or death in return for payment of a specified premium. It is a form of risk management primarily used to hedge against the risk of a contingent or uncertain loss

In simpler terms, insurance is a contract between the insurer and the insured where the insurer agrees to pay the insured for any financial losses that may arise due to an unforeseen event, 

What are the 4 major types of insurance?

There are many types of insurance policies available, but the four most common types of insurance that most financial experts recommend include life, health, auto, and long-term disability¹.