There are a large variety of life insurance policies in the UK. However, they all share a common definition:

A contract between an insurance company (‘the life office’) and an individual or individuals, where payment by the life office in return for premiums paid depends in some way on the duration of a human life or lives.

The sum payable under a life policy is called the ‘sum assured’, and this will become payable either upon the death of the ‘life assured’ or his survival to the end of an agreed period.

The premium paid will depend on the type of cover required and the age, sex, state of health and occupation of the life assured, as well as any other factors that may affect the underwriting of the policy. Underwriting is the process whereby the life offices assesses proposals, decides whether to accept the risks and if so, at what rate of premium.