Life Insurance is a contract between the Insured (the policy holder) and the Insurance Company. The Insurance Company promises to pay the death benefit to the Insured’s beneficiary in case of demise of the Insured in exchange for timely premium paid by the Insured.
People buy Life Insurance for many reasons,
– Protect their loved ones
– Pay for funeral expense and medical benefits
– Pay off debt after their demise
– Fund kids education
– Provide for your beneficiaries or source of retirement for your partner
These are some of the examples. There is term and permanent Insurance that can serve different purposes and differ in cost and benefits. Life Insurance can serve many purposes.(Please consult your Insurance agent to discuss the benefits).