In insurance, the insurer (the one who sells the policy) and the insured (the one who purchases the policy) get a legal contract. The insurance policy includes information about the circumstances & conditions under which the insurance company will pay the insurance amount to either the insured person (means you) or the nominees (means your father, brother/sister, or mother). Insurance is a way of shielding yourself and your family from all types of losses like financial, health, etc.