Types of Insurance

Life insurance is a contract between the policy owner and the insurer, the insurer agrees to pay an amount of money if the insured individual dies or other events such as a terminal illness. The policy owner agrees to pay stipulated amount called a premium. This can either be paid in a lump some or at regular intervals. In some countries there are designs where bills and death expenses plus catering for after funeral expenses are also included in Policy Premium. Special provisions apply to life insurance, such as suicide which nulls the contract as well as misrepresentations which also breach the contract grounds. On the insured individuals death the insurer requires proof of death before paying the claim in the form of a death certificate and a completed claims form.