In insurance, consideration is the value promised and exchanged so the contract is binding.
The policyholder typically pays premium while the insurer promises indemnity according to policy terms.
Why this matters
Without valid consideration, the contract fails as an enforceable agreement. Premium non-payment can suspend coverage because the insurer is no longer receiving the promised payment for risk transfer.
Claims perspective
When a policy is under dispute, consideration questions are less about philosophy and more about whether the contract was formed, paid, and kept alive under schedule.