A life insurance policy is a contract between a policyholder and an insurer in which the insurer pays benefits to the policyholder after a predetermined length of time or upon the individual’s death in exchange for a premium. A life insurance policy can safeguard a policyholder’s family from financial hardship in the event of a tragic occurrence, such as the policyholder’s death.

Life insurance is a simple concept: you purchase a policy that provides reimbursement to your beneficiary or beneficiaries after you pass away. To make an informed decision regarding the sort of life insurance policy that will be best suited for your individual needs, the amount of death benefit that you should select for, and so on, you must have a complete understanding of life insurance.

Because human life is so valuable, losing a family member causes both financial and emotional distress. In such difficult circumstances, life insurance policies provide your family with much-needed financial security while you are away. It pays them a lump sum or in instalments, depending on what you and your insurance provider agreed to when you signed the policy.