Life insurance is a written contract between an insurance carrier and the person who purchases the life insurance policy – also known as the policy owner.
The insurer agrees to pay out a death benefit to the beneficiary of the life insurance policy upon the death of the insured person, subject to the terms, conditions and exclusions stated in the policy.
In return, the owner of the insurance policy agrees to make regular premium payments to the insurance carrier.
The owner also chooses who is the beneficiary of the insurance. The insured person may or may not be the one (owner) who pays the premiums.
Learn more about life insurance and how it works.