Life insurance is a type of insurance policy in which the sum assured is paid on the maturity of the policy or the death of the policyholder whichever is earlier. The insurance company offers to insure the life of a person in exchange for a premium which may be paid in a lump sum or periodically, say yearly, half-yearly, or monthly. If the policyholder survives till maturity, he enjoys the amount of insurance. If he dies before maturity, then the insurance claim helps in the maintenance of his family.