noun
insurance that pays out a sum of money either on the death of the insured person or after a set period."he has taken out life insurance"
What is life insurance in simple word?
Life Insurance can be defined as a contract between an insurance policy holder and an insurance company, where the insurer promises to pay a sum of money in exchange for a premium, upon the death of an insured person or after a set period.
What are the 3 main types of life insurance?
The three main types are whole, universal life insurance, and term life insurance.
How does life insurance work?
When you purchase a life insurance policy, you agree to pay premiums to keep your coverage intact. If you pass away, the life insurance company can pay out a death benefit to the person or persons you named as beneficiaries of the policy. Some life insurance policies can offer both death and living benefits.