Life Insurance Policy Meaning. The most common forms of permanent life insurance are whole life and universal life. In legal terms, life insurance is a contract between a policy owner and insurer, wherein the latter agrees to reimburse the occurrence of the insured individual's death or other event such as terminal illness or critical illness.
The group of people is usually not less than 5. Life insurance can help defray costs of the funeral, pay off the estate's debts, and may provide for the survivors' (notably a widow or widower) future.there are two main types of life insurance. An endowment life insurance policy is a form of insurance that “matures” after a certain length of time, typically 10, 15 or 20 years past the policy’s purchase date, or when the insured reaches a specific age.
If the policyholder dies during that period, the life insurance company will make a payment to the selected beneficiaries.
Most often, this means two spouses, but other situations might also be appropriate for a joint life insurance policy. In case of death of the insured individual during the policy term, the death benefit is paid by the company to the beneficiary. What is group life insurance policy? In insurance, the insurance policy is a contract (generally a standard form contract) between the insurer and the policyholder, which determines the claims which the insurer is legally required to pay.