Life Insurance Definition
Insurance providing for payment of a stipulated sum to a designated beneficiary upon death of the insured examples of life insurance in a sentence recent examples on the web forty six percent of americans do not own life insurance as of 2020 according to limra.
Life insurance definition. Definition of life insurance. Life insurance 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 in exchange for a premium upon the death of an insured person. Life insurance definition can be explained as many things such as peace of mind or a security blanket for loved ones. Other expenses such as funeral expenses can also be included in the benefits.
Depending on the contract other events such as terminal illness or critical illness can also trigger payment. Life insurance is a contract between an insurer and a policyholder.