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 is life insurance in one sentence?
Life insurance is insurance that pays a sum of money to you after a period of time, or to your family when you die. With many life insurance policies, the only benefit received is a lump sum payout on death.
What is insurance simple answer?
Insurance is a way to manage your risk. When you buy insurance, you purchase protection against unexpected financial losses. The insurance company pays you or someone you choose if something bad happens to you. If you have no insurance and an accident happens, you may be responsible for all related costs.
What are life insurance examples?
When you buy life insurance, you enter a contract with an insurance company that promises to provide your beneficiaries with a certain amount of money upon your death. In return, you make periodic payments, called premiums.