Life Insurance
Life insurance is an activity whereby a policyholder makes regular payments to an insurer in return for which the insurer guarantees to provide the policyholder (or in some cases another nominated person) with an agreed sum, or an annuity, at a given date or earlier if the policyholder dies beforehand.
The sum payable under the policy (benefit) may be fixed or may vary to reflect the income earned from the investment of premiums during the period for which the policy operates. For policies with varying returns, the terms “with-profits” life insurance or endowment policy are generally used. Although the date and sum may be variable, a claim is always paid in respect of a life policy.