Life Insurance
Life insurance is a contract between an individual and an insurance company, where the insurer guarantees to pay a lump sum amount to the designated beneficiary in the event of the policyholder’s death. This payment, known as the death benefit, is typically tax-free and is designed to provide financial support to the deceased’s family or loved ones.
Term life insurance policies provide coverage for a specific period, such as 10, 20, or 30 years. The premiums for term life insurance policies are typically lower than other types of life insurance policies, but the death benefit is only paid out if the policyholder dies during the policy term.
Key Points
- Protection: Ensures financial security for your loved ones after you're gone.
- Payout: Offers a lump-sum payment to beneficiaries.
- Peace of Mind: Provides reassurance for a secure future.