Life insurance is a contract upon which the insurance company agrees to pay the insurer’s beneficiary an amount of money. The benefit is due in the case of death, terminal illness or a health condition that forbids the insurer from making money. The insurer has to pay a yearly premium to keep the contract valid. There will usually be some limitations or cases where the company won’t be obliged to pay the benefit to the beneficiary or beneficiaries.
There are several types of life insurance that you can choose from. A term life insurance guarantees that the insurer is covered for a fixed number of years. After this time, they receive a payment. A whole life insurance is more expensive because its value increases over the years. A universal life insurance is more flexible. The value, the premium and all the other terms can be changed at any point in time.
Life insurance is useful for people who want to secure financial rewards for their families after they are gone or unable to make money. You can also enjoy some of the benefits after retirement because there are different policies to choose from. You should do your homework before picking the right life insurance. Your welfare and that of your loved ones will depend on it.