Life insurance is really a contract whereby one party insures somebody against loss from the death of another. An insurance on life is really a contract through which the insurer (the insurance company ) for any stipulated sum, engages to pay out a particular amount of cash if another dies inside the time limited from the policy. The payment from the insurance money hinges upon the loss of life and in its broader sense, life insurance includes accident insurance, since every daythe world is insured under either contract.