Life insurance can be defined as a contract between a policyholder and an insurance company in which the insurance company undertakes to pay a sum of money in exchange for premiums upon the death of the insured or after a certain period.
Purchasing life insurance can protect your spouse and children from potentially devastating financial loss if something were to happen to you. It provides financial security, helps pay off debts, helps with living expenses, and helps with medical or contingent expenses.
Whether life insurance is a wise investment for you may depend on what you want the policy to do for you. If you just want your loved ones to be financially secure in case you lose your income after you die, term life insurance may be worth it, even if you survive the policy.
Life insurance benefits can help replace your income in the event of your death. This means your beneficiary can use the money to help pay for essential expenses, such as your child's mortgage payment or school fees. It can also be used to pay off debts, such as credit card bills or outstanding car loans.
Life Insurance allows policyholders to build cash value through the accumulation of life insurance policies over their lifetime. This is considered a living benefit of life insurance because unlike the death benefit, which is paid on death, you can use the money while you are still alive.
.svg_20230202161558723_42.png){kind=icon}
