Life insurance is a contract between you, the policy owner, and the insurer company. It pledges the payment of a certain sum assured to you or your family when the event that you are insured against occurs. In most cases, the events during which the contract is valid for payment are:

• When the contract reaches maturity
  
  
• If unfortunate death occurs before the date of maturity
  
  
• Sickness

Some policies even offer the benefit of paying a percentage of the sum assured at certain periodic intervals, which means that you can have a dual benefit of a life cover and easy liquidity through some lump sum cash.