Definition - What does Life Insurance mean?
Life insurance is a contract where an insurance company agrees to give money to the named beneficiary in the policy once the insured dies. The insured, meanwhile, pays a premium to earn that benefit.
Insuranceopedia explains Life Insurance
What started out as spending for a dead soldier's funeral expenses in Ancient Rome (100 BC) is now the familiar product that we all know as life insurance. While funeral expenses might still be part of the coverage, the basic benefit is money that is given to the beneficiary listed on the policy. The insurance company might also specify exclusions such as suicide or war as causes of death. These exclusionary conditions will prevent the insurer from providing the benefit. Another common life insurance clause is that the policy will not payout if death occurs within two years of the purchase of the policy.