What is an assurance in the context of life insurance?

In the context of life insurance, an assurance refers to a promise made by the insurer to pay a specified amount to the policyholder's beneficiaries upon the occurrence of a defined event, typically the death of the insured. This assurance serves as the foundational principle of life insurance, where the insurer agrees to provide financial protection and security to the policyholder's family or dependents in the event of unforeseen circumstances.

The defined event is crucial, as it provides clarity on when the payment will be triggered. This promise is what gives life insurance its value, as it helps ensure that financial obligations and needs are met even after the policyholder has passed away. Thus, option B encapsulates the essential purpose of life insurance and the assurance it offers to policyholders and beneficiaries alike.