How is a "life insurance" policy defined in Illinois?

A "life insurance" policy in Illinois is defined as a contract that provides a death benefit to beneficiaries upon the insured's death. This definition encompasses the primary function of life insurance, which is to provide financial support to the designated beneficiaries in the event of the policyholder's death. The death benefit is usually a predetermined sum of money that can help cover various expenses, such as funeral costs, outstanding debts, or ongoing living expenses for the beneficiaries.

Other choices do not accurately reflect the essence of a life insurance policy. For example, a policy providing medical coverage pertains more to health insurance rather than life insurance. A savings account for the policyholder suggests a different financial product altogether, focused on accumulation rather than the provision of a death benefit. The temporary financial assistance plan for illness implies benefits during the insured's lifetime and does not address the core purpose of life insurance, which is focused solely on the event of death.