The word 保险 (bǎoxiǎn), meaning "insurance", is formed through a logical, conceptual combination of its two component characters. The first character, 保 (bǎo), carries the core meaning of "to protect", "to guarantee", or "to preserve". The second character, 险 (xiǎn), means "danger", "risk", or "peril". Thus, the compound literally and conceptually conveys the idea of "guarding against risk" or "ensuring safety from danger", which perfectly encapsulates the fundamental purpose of insurance as a financial mechanism for providing protection and compensation in the face of potential future hazards or losses.