Definition - What does Insured mean?
The word insured refers to anyone, or any group, who has their property or their lives protected against financial loss by an insurance policy. To be insured is to be hedged against potential financial hardships in the future. A premium usually must be paid to an insurance company in order to become insured under their policies.
Justipedia explains Insured
People often seek to become insured in order to prevent serious financial hardship. They do this by purchasing a policy from an insurer. Popular forms of insurance include car insurance, health insurance, dental insurance, and life insurance. Once a person achieves the status of being "insured" by the insurance company, they are entitled to the company's coverage. In many places, certain types of insurance are mandatory to have. Car insurance is often mandated by law because accidents can impact other people and not just the person at fault.