Life Insurance

An insurance product under which the insurer undertakes the obligation to pay a sum insured or compensation upon the occurrence of an event related to the life or health of the insured person — for example, death, survival to a specified term, or the occurrence of a health-related risk. Life insurance policies may be classified as: risk (term) insurance – providing payment only in the event of a covered risk (e.g. death or disability); savings or investment insurance – combining insurance protection with accumulation of value, which is paid out upon survival to the maturity of the contract; mixed insurance – combining risk protection with a savings or investment element. Additional coverage is often offered, such as for illnesses, accidents, or permanent disability, to ensure broader protection.