insurance
A practice or arrangement by which a company provides a guarantee of compensation for specified loss, damage, illness, or death in return for payment of a premium.
In travel, it specifically protects against financial loss from trip cancellations, medical emergencies, or lost baggage.
Word relationships
- coverage: Coverage is the specific extent of protection provided by an insurance policy, while insurance is the overall system or contract.
- assurance: Assurance is often used in life insurance contexts in British English, implying a certainty of event (like death), whereas insurance is for risks that might happen (like accidents).
Commonly confused with
- assurance: Assurance is a declaration intended to give confidence, while insurance is a legal financial contract protecting against loss.
Word family
- insure (verb): To provide or secure insurance for.
- insurer (noun): A person or company that provides insurance.
Collocations
- travel insurance
- insurance policy
- buy insurance
- insurance claim
Example sentences
- "I highly recommend buying travel insurance in case your flights are canceled due to bad weather." A travel agent advising a client
- "Fortunately, her medical bills were covered by the comprehensive insurance policy she purchased." An emergency medical situation abroad
Memory hook
Think of 'in-sure'. It makes you feel 'sure' that you won't lose your money if things go wrong. Insurance makes you sure of your safety net.
When not to use
Do not use when referring to physical safety measures (like a seatbelt) rather than financial protection.
Fun facts
- The earliest forms of insurance were developed by Chinese and Babylonian traders in the 3rd and 2nd millennia BC to protect shipping cargo.
Related words
Explore more words
indemnity, Indemnify, compensate, indemnification, annuity, reimbursement
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