Insurance is protection against financial loss. In order to protect his future, a person may join a group in which each member pays a certain sum of money regularly with the guarantee that the group will pay any loss suffered by any member. This is known as a mutual company. Or, he may pay an organized commercial company which carries a large amount of capital to take the responsibility of any loss that he suffers.

There are many, many kinds of insurance in effect today and we won’t attempt to describe them all. A partial list includes life, fire, health, accident, automobile, title, liability, burglary, and even crop, rain, and earthquake insurance.