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Life and Death Insurance

Life insurance is a contract between the policy holder and the insurer, where the insurer promises to pay a designated beneficiary a sum of money (a "premium") upon the death of the insured person. Depending on the contract, other events such as terminal illness or critical illness may also trigger payment. In return, the policy holder agrees to pay a stipulated amount . The value for the policy owner is the 'peace of mind' in knowing that the death of the insured person will not result in financial hardship.