Life policies are legal contracts and the terms of the contract describe the limitations of the insured events. Specific exclusions are often written into the contract to ...LifeinsuranceFromWikipedia,thefreeencyclopediaJumptonavigationJumptosearchTypeofcontractLifeinsurancecertificateissuedbytheYorkshireFire&LifeInsuranceCompanytoSamuelHolt,Liverpool,England,1851.OndisplayattheBritishMuseuminLondonLifeinsurance(orlifeassurance,especiallyintheCommonwealthofNations)isacontractbetweenaninsurancepolicyholderandaninsurerorassurer,wheretheinsurerpromisestopayadesignatedbeneficiaryasumofmoney(thebenefit)inexchangeforapremium,uponthedeathofaninsuredperson(oftenthepolicyholder).Dependingonthecontract,othereventssuchasterminalillnessorcriticalillnesscanalsotriggerpayment.Thepolicyholdertypicallypaysapremium,eitherregularlyorasonelumpsum.Otherexpenses,suchasfuneralexpenses,canalsobeincludedinthebenefits.Lifepoliciesarelegalcontractsandthetermsofthecontractdescribethelimitationsoftheinsuredevents.Specificexclusionsareoftenwrittenintothecontracttolimittheliabilityoftheinsurer;commonexamplesareclaimsrelatingtosuicide,fraud,war,riot,andcivilcommotion.Difficultiesmayarisewhereaneventisnotclearlydefined,forexample:theinsuredknowinglyincurredariskbyconsentingtoanexperimentalmedicalprocedureormedicationresultingininjuryordeath.Modernlifeinsurancebearssomesimilaritytotheassetmanagementindustry[1]andlifeinsurershavediversifiedtheirproductsintoretirementproductssuchasannuities.[2]Life-basedcontractstendtofallintotwomajorcategories:Protectionpolicies:designedtoprovideabenefit,typicallyalumpsumpayment,intheeventofaspecifiedoccurrence.Acommonform—morecommoninyearspast—ofaprotectionpolicydesignisterminsurance.Investmentpolicies:themainobjectiveofthesepoliciesistofacilitatethegrowthofcapitalbyregularorsinglepremiums.Commonforms(intheU.S.)arewholelife,universallife,andvariablelifepolicies.Contents1History2Overview2.1Partiestocontract2.2Contractterms2.3Costs,insurability,andunderwriting2.4Deat