Life Insurance

Life Insurance

What is Life Insurance?

Life insurance is a financial contract between an individual (the policyholder) and an insurance company. Under this agreement, the insurer promises to pay a specified sum of money (called the death benefit) to the policyholder’s beneficiaries in the event of the policyholder’s death, in exchange for regular premium payments.

Life insurance is primarily used to provide financial protection and support to the insured person’s family or dependents after their death. It can help cover expenses such as funeral costs, outstanding debts, daily living expenses, and future needs like education or retirement.