Life insurance is a contract between an insurance policy holder and an insurer, where the insurer promises to pay a designated beneficiary a sum of money (the benefit) in exchange for a premium, upon the death of an insured person (often the policy holder). Depending on the contract, other events such as terminal illness or critical illness can also trigger payment. The policy holder typically pays a premium, either regularly or as one lump sum. Other expenses (such as funeral expenses) can also be included in the benefits.
Life policies are legal contracts and the terms of the contract describe the limitations of the insured events. Specific exclusions are often written into the contract to limit the liability of the insurer; common examples are claims relating to suicide, fraud, war, riot, and civil commotion.
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Health insurance is a type of insurance coverage that covers the cost of an insured individual's medical expenses, such as doctors visits, medicines, surgical expenses, and so on. Depending on the type of health insurance coverage, the insured makes payments to their health provider or pays costs out-of-pocket and is then reimbursed. In health insurance terminology, the "provider" is a clinic, doctor, hospital, health care practitioner, or pharmacy. The "insured" is the person with the health insurance coverage and usually the owner of the health insurance policy.