The Definition of Life Insurance

Often the question arises in our minds, what the meaning or definition of the Life Insurance?
Life Insurance is a legal agreement between the parties that the insurance companies use insurance. Parties that use these insurers are the ones who have the same risk and agree to appoint an insurance company to cover risks that can arise at any time in their lives. The agreement with the insurance company is called Life Insurance Contracts.
And, the physical form of contract (printed form) which serves as proof of an agreement between the Insurer (insurers) - in this case is the insurer and the insured party (insured) - in this case is the parties who use the insurance, called the Insurance Policy.
Through this agreement, the insured / policy holder pays a sum of money called premium at regular intervals to another party, called the Insurer (Insurance Company), the amount as stated in the Insurance Contract.
Instead, the Insurer (Insurance Company), agreed to pay a sum of money or provide services if the events are covered (eg accident, illness or death) occurred during the validity period of the policy.
Object Life Insurance
Then what is the object or what is insured / guaranteed in this life insurance?
People who are still alive and healthy is the object of a life insurance policy, or commonly referred to as the insured party (insured).
For life insurance policy, the party who will receive payment of the death of the insured (insured) is the recipient / beneficiary (beneficiary) is determined solely by the insured (insured).
Usually the life insurance beneficiary designated in the agreement between the Insured and the Insurer is the core insured family members. But for certain products which are owned by the insurer, the insured person can also as the recipient / beneficiary (beneficiary).
For example, Product A will return all premiums have been paid to the Insurer if the insured is still alive after pertanggunggan period has ended. For example, the insured person passes the age of 70 years while the insured coverage only until age 70 years, then he is entitled to receive all the premiums have been paid to the Insurer. Of course provision and type of product coverage can be different depending on what products are owned by the Insurer and that taken by the Insured.