What Is Life Insurance Definition

November 17, 2020

The insured meanwhile pays a premium to earn that benefit. Life insurance is a contract where an insurance company agrees to give money to the named beneficiary in the policy once the insured dies.

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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.

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. Depending on the contract other events such as terminal illness. Life insurance is a contract in which an insurer in exchange for a premium guarantees payment to an insureds beneficiaries when the insured dies.

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