Life insurance is a contract between an individual and an insurance company. The individual pays a regular premium to the insurance company, and in exchange, the company provides a lump-sum payment to the individual’s beneficiaries upon the individual’s death.
Life insurance can provide financial security for your loved ones in the event of your unexpected death. It can help cover the costs of funeral expenses, outstanding debts, and living expenses for your beneficiaries.
There are two main types of life insurance: term life insurance and permanent life insurance. Term life insurance provides coverage for a specific period of time, while permanent life insurance provides coverage for the entire lifetime of the insured individual.
The amount of life insurance you need depends on a variety of factors, including your income, expenses, outstanding debts, and the needs of your beneficiaries. A financial advisor or insurance agent can help you determine the appropriate amount of coverage.
The cost of life insurance varies depending on the type of policy, the amount of coverage, and the age and health of the insured individual. Term life insurance is generally less expensive than permanent life insurance.