A contract where an insurance company promises to pay a specified benefit to beneficiaries upon the policyholder’s death in exchange for premiums. The cost and availability depend on factors such as age, health, and the type and amount of coverage. Life insurance policies include fees such as mortality and administrative charges. Early policy surrender may trigger surrender fees and tax consequences. It’s important to assess insurability before purchasing life insurance. Policy guarantees rely on the insurer’s ability to fulfill claims.