Although the terms insurance and insurance policy are used interchangeably, they both have a more specific definition. Whereas insurance broadly refers to all different types of insurance (such as life insurance, or disability insurance), insurance policy refers specifically to the legal contractual agreement that is taken out between the issuer of the insurance and the policy holder.
The contractual insurance policy will lay out all of the terms, such as the specific type of coverage, the deductible amount and premiums, the length of the terms until maturity, whether or not the policy can be cashed out early, what event must occur to trigger a payout (such as a work related injury), and various other factors that go in to the agreement. Like all contracts there may be small print that should be discussed with a lawyer. Should there be a disagreement between the insurance company and the insurance holder, the policy acts as legal evidence that the policy was taken out and under what terms.
There are many different types of insurance, each with their own unique policy. For example, health insurance policy is going to be different from auto insurance policy. Common types of insurance policy include life insurance policy, auto insurance, medical insurance, homeowners insurance policy, health insurance, and business insurance. What they all have in common is that they protect the policyholder against certain events that may cause a financial burden. Travel insurance policy and term insurance policy are also very common.