Life Insurance
Life Insurance
Life insurance is a financial contract between an individual and an insurance company. In exchange for regular premium payments, the insurance company provides a death benefit to the designated beneficiaries upon the death of the insured.
Types of Life Insurance:
Term Life Insurance:
- Provides coverage for a specific term (e.g., 10, 20, or 30 years).
- Pure insurance with no cash value.
- Typically more affordable than other types.
Whole Life Insurance:
- Coverage for the entire life of the policyholder.
- Accumulates cash value over time.
- Premiums are generally higher than term life insurance.