A life insurance policy is a written contract between the insurance company and the owner of the insurance policy.
The owner agrees to pay a premium to the insurance company in return for the insurance company paying out a death benefit upon the death of the person whose life is being insured by the life insurance policy.
The owner of the life insurance policy may be the insured person.
If the insured person dies, the death benefit is paid out to the beneficiary (the person or persons chosen by the insured/owner to receive the benefit).
However, the life insurance policy must be "In Force" which means paid up to date and active. Also, there are exclusions which may apply to the life insurance policy for which no death benefit is paid out, such as, death resulting from an act of war, or suicide within the first two years of being insured.
There are two basic types of life insurance: Term and Permanent.
Here's how to learn about the advantages and disadvantages of term life insurance versus permanent life insurance.