It is a contract entered into between the holder of the insurance policy and the insurance company or the insurer under which the insurance company pledges to pay an amount of money (the amount due) when the insured person dies (the person who insures his life) for insurance premiums paid by the insured person to the insurance company regularly or in one total payment.
The effective period of the contract shall be specified in the contract. Usually the contract provides for the amount to be paid by the company to the inheritors or the beneficiaries in the event of the death of the policy owner.
The policy may include additional contracts or additional benefits including disability, serious diseases, a plan to guarantee the university education of the children or the university education of the children or any other goals or programmes.
Life insurance also includes protection against financial losses resulting from the early death conditions to secure the future of their children in the event of death or injury.
- Life insurance policy: it provides for the right of benefit and not inheritance in view of the fact that this policy helps the beneficiary who is the person who will receive the proceeds of the policy in case of the death of the insured. The policy is a right of benefit and not a right of inheritance as the designated beneficiary is appointed according to the category which is the category of the legitimate inheritors.
- Life insurance Policy: According to this policy the amount of insurance is paid any time the insurer dies.
- Popular life insurance (home life insurance): The insurance agent collects his premiums from the homes of the insured persons since the premium the insurance premiums registered by the insurance company are a debt on the insurance agent who collects them on monthly basis from the houses of the insured people.