LIFE INSURANCE

Life insurance is a financial contract between an insurance policyholder and an insurer, where the insurer promises to pay a designated beneficiary a sum of money (the death benefit) upon the death of the insured person. It is designed to provide financial protection to the insured’s family or dependents in the event of their death, helping them cover expenses such as funeral costs, mortgage payments, or children’s education. Life insurance policies can be term life (covering a specific period) or permanent life (covering the insured’s entire life), with premiums typically based on factors like age, health, and coverage amount. It serves as a crucial tool for estate planning and ensuring financial security for loved ones after the insured’s death.