For triggers? Make a temporary unit group, pick every unit in the area for healing, filter out what gets healed using if/then/else statements, then use that "set life" action you mentioned for each picked unit in the unit group.
If you want a spell that does *only* area healing: Scroll of Healing.
It's an item ability that can be changed to a unit or hero ability in the object editor. There are other variants of it that increase armor and restores mana at the same time, too.
Want something with an autocast? Well, you've got the undead Essence of Blight ability.