Life insurance or life assurance is a contract between the policy owner and the insurer. The insurer agrees to pay a sum of money upon the occurrence of the insured death. In return, the policy owner (or policy payer) agrees to pay a stipulated amount called a premium at regular intervals or in lump sums.

As with most insurance policies, life insurance is also a contract between the insurer and the policy owner (policyholder) whereby a benefit is paid to the designated Beneficiary (or Beneficiaries) if an insured event occurs which is covered by the policy. The insured event must be based upon life (or lives) of the people named in the policy to be considered a life policy.

Insured events that may be covered include:

• Death
• Accidental Death
• Sickness