Insurance is a term used to refer to an action

Insurance is a term used to refer to an action, system, or business in which financial protection (or financial compensation) for the soul, property, health and so on gets reimbursed from unforeseen events that can occur such as death, Loss, damage or illness, which involves regular premium payments within a certain period of time in exchange for a policy that guarantees such protection. 

The term 'insured' usually refers to anything that gets protection

Insurance in Law No. 2 Th 1992 on insurance business is an agreement between two or more parties, where the insurer binds to the insured, by accepting the insurance premium, to provide replacement to the insured for loss, damage or loss of expected profit or third party liability It may be suffered by the insured, arising from an uncertain event, or giving a payment based on the death or life of a person insured. 

A body that risks the risk of being called 'insured', and the risk-taking body is called 'insurer'. The agreement between these two bodies is called a policy: this is a legal contract that describes every protected term and condition. The costs paid by 'the insured' to the 'insurer' for the risks incurred are called 'premiums'. This is usually determined by 'insurers' for future claims, administrative costs, and profits. 

For example: a couple bought a home for $ 100. Knowing that losing their home will lead them to financial collapse, they take insurance protection in the form of homeownership policies. The policy will pay replacement or repair of their home in case of a disaster. The insurance company is about their premium of Rp1 million per year. The risk of losing a home has been channeled from homeowners to an insurance company.