An insurance policy is a contract between an individual or organization, known as the policyholder, and an insurance company.

The policy sets out the terms and conditions of the insurance coverage, including the risks, covered, the amount of coverage provided, the premiums payable, and any deductibles or exclusions. Insurance policies are typically purchased to protect against the financial losses that may arise from unexpected events, such as accidents, injuries, theft, or damage to property.

The terms of an insurance policy can vary widely depending on the type of coverage being provided, the insurance company offering the policy, and the risk profile of the policyholder.

Some common types of insurance policies include health insurance, life insurance, property insurance, and liability insurance. Insurance policies may be sold directly by insurance companies, through agents or brokers, or as part of a benefits package offered by employers.

Policyholders are required to pay premiums in exchange for the coverage provided by the insurance policy. Premiums may be paid in a lump sum or in installments over a period of time.

Insurance policies may also include deductibles, which are the amount the policyholder must pay out of pocket before the insurance coverage kicks in. Policyholders may file claims with the insurance company to receive payment for covered losses or damages.