Life insurance is a contract between an insurance policy holder and an insurer, where the insurer agrees to pay a designated beneficiary a sum of money (the "benefits") upon the death of the insured person. In exchange, the policy holder agrees to pay a predetermined amount of money (the "premium") to the insurer periodically. The policy holder typically pays the premium until the insured person dies, at which point the insurer pays the benefits to the designated beneficiary.