Q.Life Insurance is best described as a contract of:
(A) Indemnity, exactly like Fire and Marine Insurance
(B) Assurance, because death is a certain event and a human life has no measurable market value to cap a claim at
(C) Guarantee, because a third party guarantees the insured's own debt
(D) Bailment, because the insurer merely holds the sum assured in trust

Life insurance pays the full sum assured regardless of financial circumstances, because a life has no measurable value and death is certain — only its timing is uncertain.

Life Insurance pays the full sum assured stated in the policy on the insured's death or survival to maturity, regardless of the insured's actual financial circumstances at the time, because death (or survival) is a CERTAIN event for every human being — only its exact timing is uncertain — and a human life has no objectively measurable market value that a claim could be capped at. For these reasons life insurance is more accurately called a contract of assurance rather than a contract of indemnity.

Option-by-option analysis:

• (A) Incorrect — indemnity limits recovery to actual measurable loss, which does not apply to a human life. …