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 short definition?
Life insurance is a contract between an insurer and a policy owner. A life insurance policy guarantees the insurer pays a sum of money to named beneficiaries when the insured dies in exchange for the premiums paid by the policyholder during their lifetime.
What are the 3 main types of life insurance?
The three main types are whole, universal life insurance, and term life insurance.
What is the real purpose of life insurance?
The major purpose of life insurance is protection — the instant estate to meet survivor needs. Some policies include a savings feature, but there are many other ways to save money and make investments.