Life Insurance

Life insurance, or as they call it in the UK life assurance, is a contract that is set between the policy owner, that is the insured party, and the insurer, that is usually an insurance agency.
Both parties sign an agreement wherein the insurer is obliged to pay the policy owner a set sum of money in the case of the policy owner's death.
On the other side, the owner of the life insurance policy in obliged to pay a set amount each month, called a premium. The premium is set according to various calculations that are done, including the age of the policy owner, his/her profession, etc.

In case the policy owner dies the insurer has to pay the beneficiary or beneficiaries that are named in the policy, in case the owner falls under the category of one of these conditions:
death (accidental death or other) diagnosis of a terminal illness, disability due to ill health, permanent disability, requirement for long term care ore other conditions.