What Is Life Insurance Definition

Life insurance definition is insurance providing for payment of a stipulated sum to a designated beneficiary upon death of the insured.

What is life insurance definition. Life insurance is a contract between an insurer and a policyholder in which the insurer guarantees payment of a death benefit to named beneficiaries when the insured dies. In exchange for premium payments the insurance company provides a lump sum payment known as a death benefit to beneficiaries upon the insured s death. A life insurance policy is a contract with an insurance company. Life insurance insurance cover that serves two major purposes.

I have also taken out a life insurance policy on him just in case. Depending on the contract other events such as terminal illness. Universal life ul insurance is permanent life insurance with an investment savings element and low premiums that are similar to those of term life insurance. In addition to paying a death benefit whole life insurance also contains a savings component in which cash value may accumulate.

Most ul insurance policies contain a. The insured meanwhile pays a premium to earn that benefit. Life insurance is a form of insurance in which a person makes regular payments to an insurance company in return for a sum of money to be paid to them after a period of time or to their family if they die. Life insurance or life assurance especially in the commonwealth of nations is a contract between an insurance policy holder and an insurer or assurer where the insurer promises to pay a designated beneficiary a sum of money the benefit in exchange for a premium upon the death of an insured person often the policy holder.

Life insurance is a contract where an insurance company agrees to give money to the named beneficiary in the policy once the insured dies. Term life insurance also known as pure life insurance is a type of life insurance that guarantees payment of a stated death benefit if the covered person dies during a specified term. Whole life insurance provides coverage for the life of the insured. The policy holders buy insurance cover from an insurance company and pay specific periodic amounts premiums for the term duration or life of the policy.