What is a "life insurance policy" as defined by the Connecticut Insurance Code?

A life insurance policy, as defined by the Connecticut Insurance Code, is a contract that pays a designated beneficiary a specified sum of money upon the insured's death. This definition captures the essential purpose of a life insurance policy, which is to provide financial support to the insured's beneficiaries, helping them manage expenses or maintain their quality of life after the insured's passing.

This structure highlights the contractual nature of life insurance, where the insurer agrees to pay a benefit in exchange for the policyholder's premiums. The designation of a beneficiary is also a critical aspect, as it determines who will receive the payout when the insured event occurs. Understanding this definition is crucial for grasping the fundamental elements of life insurance and recognizing its role in financial planning and risk management.

The other options do not accurately reflect the definition of a life insurance policy as established by the Connecticut Insurance Code. They focus on different types of insurance products or purposes that do not align with the specific characteristics of life insurance.