A life insurance policy is an agreement between you (the policyholder) and the insurance company. In this agreement, you pay regular amounts, called premiums, to the insurer. In return, the insurer promises to pay a set amount of money, known as the death benefit, to your chosen beneficiary if you pass away. Life insurance offers different types of plans, and some also include a payout, called the maturity benefit, if you live longer than the policy term.