Life insurance is a contract between an insurance policy holder and an insurer in which the insurer promises to pay a designated beneficiary a sum of money (the "benefits") upon the death of the insured person.
Depending on the contract, other events, such as terminal illness or critical illness, may also trigger payment. The policy holder typically pays a premium, either regularly or as a lump sum. Other expenses (such as funeral expenses) are also sometimes included in the premium.
Life policies are legal contracts and the terms of the contract describe the limitations of the insured events. Specific exclusions are often written into the contract to limit the liability of the insurer; common examples are claims relating to suicide, fraud, war, riot and civil commotion
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