Is Life Insurance An Indemnity Policy? 
No , life insurance is not an indemnity policy . The concept of indemnity insurance does n't apply to life insurance . Indemnity policies pay for actual economic loss up to a stated maximum in the policy . The claim needs to be proven by the policy owner . In life insurance , the amount of the actual economic loss is not relevant . When the life insured dies , the insurer is required to pay the total death benefit amount specified in the policy . 