Definition, Meaning & Synonyms

insurance-scheme

noun

/ɪnˈʃʊərəns skiːm/

Definition

A structured plan or program through which financial protection is provided against potential losses or damages in exchange for regular contributions or premiums.

Examples

Many people opt for an insurance scheme to secure their family’s financial future.
The government introduced a new insurance scheme to support small businesses during economic downturns.
Before joining any insurance scheme, it’s essential to read the terms and conditions carefully.

Meaning

An insurance scheme is designed to manage risk by pooling contributions from multiple participants to cover the costs associated with unforeseen events, such as accidents, illnesses, or property damage.