Life Insurance: A type of insurance that pays a benefit upon the death of an insured person.

The owner of a life insurance policy pays premiums to an insurance company that provides insurance for a person, the insured. The insurance company agrees to pay a specified sum to a designated beneficiary upon the death of the insured person. The insured may or may not be a Household Member. The owners of the life insurance policy is captured via Ownership.
For certain programs, a life insurance policy is a resource if it generates a cash surrender value (CSV). A CSV is a form of equity value that it acquires over time. Its value as a resource is the amount of the CSV. Face value is the amount of basic death benefit contracted for at the time the policy is purchased.

Example

John Smith purchases an life insurance policy from an insurance company for Linda Smith. A case worker creates a Life Insurance record with John Smith as the policy owner and Linda Smith as the insured participant. On Linda Smith's death, John Smith will receive the face value of the policy.