Life Insurance
An insuring organization insures a person based on the risk of death of the policyholder.. Mortality is subject to the laws of probability and life-insurance premiums can be calculated from mortality tables.
Life insurance is classified in a variety of ways depending primarily on how the premium is collected such as regular ordinary, debit, and group life insurance. Regular ordinary insurance is further classified into whole life, limited-payment life, endowment, and term.
Group life insurance is usually the least expensive type of life insurance since the premium is based on a larger group of people applying together (usually through an employer), thus reducing the cost. Costs vary according to the type of classification, or projected health of the individual (for an individual plan).