Life insurance is a type of insurance that provides financial protection for individuals and their loved ones in the event of the policyholder’s death. It is designed to provide a death benefit to the beneficiaries named in the policy in order to help them financially after the policyholder’s passing.
There are two main types of life insurance: term life insurance and whole life insurance (or permanent insurance).
Term life insurance provides coverage for a specific period of time, such as 10, 20, or 30 years. If the policyholder dies during the term of the policy, the death benefit is paid to the beneficiaries. If the policyholder survives the term, the coverage expires and there is no death benefit paid.
Whole life insurance, also known as permanent insurance, provides coverage for the policyholder’s entire life, as long as the premiums are paid. It also includes a savings component that accumulates cash value over time.
Life insurance policies typically require the policyholder to pay premiums, the cost of which can vary depending on factors such as the policyholder’s age, health, and coverage amount.
Life insurance can provide peace of mind and financial security for the policyholder’s loved ones in the event of unexpected death.
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