Life insurance is a contract between yourself and the insurer. You make either regular payments, or a one off payment. In the event of death, or for some policies the event of terminal illness or critical illness, a prearranged sum of money is paid to the beneficiary or beneficiaries of the policy.
Other expenses such as funeral are sometimes included in the benefits of the policy.
Life insurance policies are legal contracts and set out the limitations of the insured events. Specific exclusions are written into the contract to limit the liability of the insurer. Some examples of these may include claims relating to suicide, fraud, war, riot and civil commotion.
