Insurance

Life insurance is a contract between an individual and an insurance company.  Under this contract, the individual pays a regular premium to the insurance company, and in exchange, the insurance company agrees to pay a sum of money to a designated beneficiary upon the death of the insured individual.

The purpose of life insurance is to provide financial protection to the insured's family or other designated beneficiaries in the event of the insured's death. The death benefit can be used to cover expenses such as funeral costs, outstanding debts, and living expenses for surviving family members.

Life insurance policies come in different forms, such as term life insurance and permanent life insurance.  Term life insurance provides coverage for a specific period of time, while permanent life insurance provides coverage for the entire lifetime of the insured individual.  The premiums for permanent life insurance are typically higher than for term life insurance, but they also have the potential to accumulate cash value over time.