life insurance


life insurance


: a type of insurance that pays money to the family of someone who has died

Full Definition of LIFE INSURANCE

:  insurance providing for payment of a stipulated sum to a designated beneficiary upon death of the insured

First Known Use of LIFE INSURANCE



life insurance

noun    (Concise Encyclopedia)

Method by which large groups of individuals equalize the burden of financial loss from death by distributing funds to the beneficiaries of those who die. Life insurance is most developed in wealthy countries, where it has become a major channel of saving and investing. There are three basic types of life-insurance contract. Term insurance is issued for a specified number of years; protection expires at the end of the period and there is no cash value remaining. Whole-life contracts run for the whole of the insured's life and also accumulate a cash value, which is paid when the contract matures or is surrendered; the cash value is less than the policy's face value. Endowment contracts run for a specified time period and pay their full face value at the end of the period.


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