Life insurance or life assurance is a contract is a between the policy owner the insurer , where the insurer agrees to pay a sum of money upon the occurrence regulars intervals or in lumps sums . There may be designs in somes countries where bills and death expenses plus catering for after funeral expenses should be included in Policy Primium . In the United Stated , the predominant form simply specifies a lump sum to be paid on the insured's demise. As with most insurance policies ,life insurance is a contract between the insurer and the policy owner whereby a benefit is paid to the designed beneficiaries if an insured event occers which is covered by the policy.The value for the policyholder is derived, not from an actual claim event ,rather it is the value derived from the "peace of mind' experienced by the policyholder, due to the negating of adverse financial consequences caused by the the death of the Life Assured. To be a life policy the insured event must be based upon the lives of the people named in the policy.
