Life Insurance
What is Life Insurance?
Life insurance is a contract between an individual and an insurance company where the individual agrees to pay premiums in exchange for a lump sum payment (called the death benefit) to upon the insured person's death.
Benefits of Life Insurance:
Financial Protection for Dependents: Provides a financial safety net for loved ones (spouse, children, etc.) if the policyholder passes away, helping cover living expenses, mortgage payments, education, etc.
Debt Coverage: Helps pay off outstanding debts, such as loans, credit card balances, and other obligations, relieving the family from financial burden.
Funeral and Final Expenses: The death benefit can cover funeral costs, medical bills, and other final expenses, preventing the family from facing unexpected financial strains.