Who needs to give consideration to support the insurance contract?

In the context of an insurance contract, both parties involved—the policyholder and the insurer—must provide consideration to support the contract's validity. Consideration refers to something of value that is exchanged between the parties. For the insurer, the consideration typically involves the promise to provide coverage and pay claims as specified in the policy. For the policyholder, consideration usually includes the payment of premiums in return for that coverage.

This reciprocal exchange is essential in establishing a legally binding contract; without consideration from both sides, the agreement would not hold up in a legal sense. Therefore, the requirement for both the policyholder and the insurer to provide consideration is fundamental to the contract's enforceability and the overall integrity of the insurance relationship.