life insurance: meaning, definition, pronunciation and examples

Historically, 'assurance' was used for products that guaranteed a payout (like upon death), while 'insurance' was for events that might not happen (like fire). Today, 'life insurance' is the dominant term in both UK and US English, though 'life assurance' is still understood, particularly in the UK.

The core purpose is to replace lost income for dependents. If no one depends on your income, the need is less urgent, though some get it for future insurability, to cover debts, or for funeral expenses.

Term life insurance provides coverage for a specific period (e.g., 20 years). Whole life insurance provides lifelong coverage and often includes a cash value savings component, making it more expensive.

Yes, insurers can deny coverage based on high-risk factors like serious pre-existing health conditions, dangerous occupations, or hazardous hobbies. They may also offer coverage at a higher premium.

A contract between an insurer and a policyholder in which the insurer guarantees payment of a sum of money to designated beneficiaries upon the death of the insured person.

Life insurance is usually formal to neutral in financial/legal contexts; common in everyday personal finance discussions. in register.

Life insurance: in British English it is pronounced /ˈlaɪf ɪnˌʃɔː.rəns/, and in American English it is pronounced /ˈlaɪf ɪnˌʃʊr.əns/. Tap the audio buttons above to hear it.