insurance that pays out a sum of money either on the death of the insured person or after a set period. Life insurance is a contract between an insurance policy holder and an insurer or assurer, where the insurer promises to pay a designated beneficiary a sum of money in exchange for a premium, upon the death of an insured person. Life Insurance is defined as a contract between the policy holder and the insurance company, where the life insurance company pays a specific sum to the insured. A life insurance policy is a contract with an insurance company. Life insurance is a contract in which an insurer, in exchange for a premium, guarantees payment to an insured's beneficiaries when the insured. Life insurance is a contract between an insurance policy holder and an insurer or assurer, where the insurer promises to pay a designated beneficiary a sum of.