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Which of the following best describes the term 'Insure'?
To make certain
To guard against loss
To plant or establish
To limit
The correct answer is: To guard against loss
The term 'Insure' is best described as "to guard against loss." This definition aligns with the primary purpose of insurance, which is to provide financial protection against unforeseen events or risks that could lead to loss. Insurance policies are designed to mitigate the financial impact of such risks, ensuring that individuals and entities are compensated for losses incurred due to various factors such as accidents, illness, or property damage. While the other terms may have specific meanings, they do not capture the essence of what it means to insure. For instance, making certain is more related to assurance and certainty rather than financial protection. Planting or establishing pertains to development or growth rather than risk management. Limiting refers to restrictions and does not encompass the broader protective intent of insurance. Thus, the definition of insuring as guarding against loss is fundamental to understanding the function and importance of insurance in financial planning and risk management.