What is life insurance example

Example of Term Life Insurance Thirty-year-old George wants to protect his family in the unlikely event of his early death. He buys a 10-year, $500,000 term life insurance policy with a premium of $50 per month. If George dies within the 10-year term, the policy will pay George's beneficiary $500,000.

What are the 3 main types of life insurance?

The three main types are whole, universal life insurance, and term life insurance.

What is insurance give an example?

Insurance is a contract in which an insurer indemnifies another against losses from specific contingencies or perils. It helps to protect the insured person or their family against financial loss. There are many types of insurance policies. Life, health, homeowners, and auto are the most common forms of insurance.

What are the 2 basic types of life insurance?

There are two primary categories of life insurance: term and permanent. Term life insurance lasts for a set timeframe (usually 10 to 30 years), making it a more affordable option, while permanent life insurance lasts your entire lifetime.

What is the most common life insurance?

The most common type of life insurance is term life insurance. Term life insurance is the simplest and most affordable type of life insurance. It provides coverage for a specific period of time, or term. If you die during the policy term, your beneficiaries will receive a death benefit.