I've always heard of the term insurance and that I should buy insurance if I buy a car.  What does that mean?
Insurance is a way of protection from financial loss. It is there in case you have a wreck.
Why would a company insure me in that manner?  Won't they be out of pocket?  How do they make money from me?
to compensate the insured in the event of a covered loss. The loss may or may not be financial, but it must be reducible to financial terms, and usually involves something in which the insured has an insurable interest established by ownership, possession, or pre-existing relationship.
The insured receives a contract, called the insurance policy, which details the conditions and circumstances under which the insurer will compensate the insured. The amount of money charged by the insurer to the Policyholder for the coverage set forth in the insurance
had Medicare negotiating with the drug companies, you would be fixing prices." Novelli said he earned, as the AARP CEO, "...$420,000 a year. I think my salary is very fair." Solomon continued, "Have you invested any of your own money in the health-insurance business?" Novelli responded, "You mean stocks and bonds? My wife manages that. I honestly don't know. I know that we own a lot of mutual funds that buy insurance stocks. It's a