Life and health insurance policies are:

Life and health insurance policies are classified as unilateral contracts. This means that only one party, the insurer, makes a legally enforceable promise to pay benefits under specific conditions outlined in the policy. The insurer is bound to fulfill its promise to pay claims when the insured event occurs, provided that the policyholder has fulfilled their obligations, such as paying premiums and adhering to the terms of the policy.

The unilateral nature of these contracts means that while the insurer has definite commitments, the insured does not have an equal obligation to provide a promise in return—beyond paying premiums and complying with the contract terms. This characteristic emphasizes the insurance provider's role and legal responsibilities in delivering benefits to the policyholder when they become eligible.

In contrast, other contract types imply mutual agreements or promises from both parties. Bilateral contracts require each party to fulfill promises to each other, while mutual contracts involve obligations from both sides. Automated contracts typically do not fit within the context of insurance, as the involved parties engage in an agreement that requires consent and notice, rather than mere automation. Thus, identifying life and health insurance policies as unilateral contracts highlights their unique structure within contract law.