Life Insurance:. Insurance or commonly life insurance, especially in the Commonwealth is a contract between an insured
insurance policy holder and an insurer or assurer, where the insurer promises to pay a designated beneficiary a sum of money in exchange for a premium, upon the death of insured person. Depending on the contract other events such as terminal illness or critical illness may also trigger payment. The policy holder typically pays a premium, either regularly or as a lump sum. Other expenses are also sometimes included in the benefits.
Life policies are legal contracts and the terms of the contract describe the limitations of the insured events. Specific exclusions are often written into the contract to limit the liability of the insurer: common examples are claims relating to suicide, fraud, war, riot, and civil commotion.
Life based contracts tend to fall into two major categories:.
