Life insurance is a contractual agreement between a person (insured) and a life insurance company (insurer/life office) guaranteeing the payment of a specific sum of money to a designated beneficiary upon the death of the insured, or to the insured if he survives till the end of a certain period
IN ESSENCE:
It is a legally binding agreement between a person (the insured) and a Life Office;
An agreed consideration (premium) for the contract is paid to the Life Office by the insured;
The Life Office pays an agreed amount (sum assured) on death of an identifiedLife insurance is not death insurance. It does not prevent people from dying. Rather, it ensures that others (dependants) continue to live.
