What is life insurance explain with example?
A life insurance policy is essentially a contract between an individual and an insurance provider, where the company promises to pay a specified amount of money to the family or beneficiary of the individual, in return for regular payments over a period of time.
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 benefits of life insurance?
With a term life policy, you pay a specific premium for a defined term (say 10 years). If you die during that time, a death benefit is paid to your beneficiaries – but when the term is over you must get new coverage or go without. A whole life policy is permanent life insurance that last your entire life.
What is life insurance and its importance?
Life insurance provides money, or what's known as a death benefit, to your chosen beneficiary after you die. It can help give your loved ones access to money when they need it. Understanding life insurance can help you plan for your family's long-term financial needs.