Which type of insurance contract is based on an individual's life rather than property?

The correct answer is based on the concept of a personal contract, which is a type of insurance contract specifically associated with an individual's life. In personal contracts, the agreement is between the insurer and a specific individual, emphasizing personal characteristics and circumstances. Life insurance, for instance, is tailored to the insured’s lifespan, health, and personal details, making it a distinct form of coverage focused on an individual rather than on property or assets.

In contrast, the other types of contracts listed do not define the essence of this specific insurance type. Aleatory contracts involve an agreement where the dollar values exchanged are not equal, such as in gambling or insurance, but do not specifically tie to an individual's life. Conditional contracts include obligations contingent upon certain events but are not exclusive to personal life situations. Unilateral contracts involve a promise made by one party, often seen in insurance, yet, again, it does not relate specifically to life insurance but rather to how insurance operates overall. Thus, reflecting on these distinctions highlights why a personal contract is the most accurate classification for insurance based on an individual's life.