Understanding Life Insurance
What is Life Insurance?
Life insurance is a contract between the policyholder and the insurer, where the insurer promises to pay a designated beneficiary a sum of money upon the death of the insured person.
Types of Life Insurance
- Term Life Insurance: Provides coverage for a specific term or period.
- Whole Life Insurance: Offers coverage for the entire life of the insured, with guaranteed premiums.
- Universal Life Insurance: Combines a death benefit with a savings component.
- Variable Life Insurance: Allows the policyholder to allocate premiums among various investment options.