Overview
Life insurance is a contract between an individual and an insurance company. The insurer agrees to pay a death benefit to the beneficiary in exchange for premium payments.
Key Benefits
1. Financial Protection: Provides financial security for loved ones in the event of the policyholder's death.
2. Income Replacement: Helps replace lost income, ensuring dependents can maintain their lifestyle.
3. Tax Benefits: May offer tax benefits on premiums paid or payouts received.