Definition

1. Noun:
   • A type of insurance: A contract between an insurance policy holder and an insurer, where the insurer promises to pay a designated beneficiary a sum of money upon the death of the insured person.
   • Financial protection: A financial product designed to provide monetary security to a person's dependents or beneficiaries after the policyholder's death.

Usage

• Life insurance is a contract. The policyholder pays regular premiums to the insurance company.
• The primary purpose of life insurance is to provide financial support to the policyholder's family or other chosen beneficiaries.
• It is a common part of financial and estate planning.

Examples

Advanced Usage

• "To take out a life insurance policy": To purchase or initiate a life insurance contract.
  • It's wise to take out a life insurance policy when you have young children.
• "Life insurance beneficiary": The person or entity legally designated to receive the insurance payout.
  • She updated her will to name her sister as the life insurance beneficiary.

Variants and Related Words

• Life assurance (noun): A term used primarily in British English, synonymous with life insurance. It often implies a policy that pays out upon death or after a set period.
• Term life insurance (noun): A policy that provides coverage for a specific period (e.g., 20 years).
• Whole life insurance (noun): A policy that provides coverage for the insured's entire life and often includes a cash value component.

Synonyms

• Death benefit: The payment made to a beneficiary from a life insurance policy.
• Assurance (UK): A synonym for insurance, particularly in the context of life coverage.

Related Phrases

• Life insurance premium: The amount of money paid periodically to keep the insurance policy active.
  • The life insurance premium is due monthly.
• Life insurance coverage: The amount of money the policy will pay out upon the insured's death.
  • They reviewed their life insurance coverage to see if it was sufficient.

Noun

1. insurance paid to named beneficiaries when the insured person dies
   • in England they call life insurance life assurance