Life insurance or
life assurance, especially in the
Commonwealth, 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). Depending on the contract, other events such as
terminal illness or
critical illness can also trigger payment. The policy holder typically pays a premium, either regularly or as one lump sum. Other expenses (such as funeral expenses) can also be included in the benefits.