Life insurance is an agreement between an insurer and a policyholder. A life insurance policy ensures the insurer pays a sum of money to any named beneficiary or beneficiaries when the insured policyholder dies; in view of the fact that the policyholder paid premiums during their lifetime.

There are different types of life insurance. And these types of life insurance differ from each other. 

Term life insurance is only valid for a certain number of years. Some common terms are valid for 10, 20, or 30 years. 

Increasing Term life premiums are lower when you're younger. And tend to increase as you grow older. This is also called the “yearly renewable term.”

Return of Premium is a life insurance type that has a built-in means of savings. You pay a flat rate for the duration of your policy. But in contrast to formal term life insurance, you'll get your money back at the end of the term.

Permanent life insurance is valid for the insured’s entire life. Except in a situation where the policyholder stops paying the premiums.

Single-Premium involves the policyholder paying the entire premium upfront. Instead of making quarterly, monthly or annual payments.

Whole Life insurance is a type of continual life insurance that amasses cash value. Universal Life has premiums that are like term life insurance.

Other insurance types include; guaranteed universal, indexed universal, burial, or final expense. And guaranteed issue insurance. 

Going forward, there are benefits to insuring your life. Let's say it's a very comfortable and safe investment. Here are some of the benefit of life insurance benefits:

Life insurance policy benefits pay for final expenses after you die. And these expenses might include; medical bills, funeral or cremation costs. And other expenses not covered by health insurance. Which are -  estate settlement costs and other unpaid obligations.

Life insurance benefits can be a substitute for income even if you die. In more light, your beneficiaries can use the money to help cover important expenses. Such as paying a mortgage or college tuition, paying off debt - credit card bills, or an outstanding car loan.

When people buy life insurance; it can be a form of inheritance to their loved ones. They can assign someone or people to receive their benefits as an inheritance.


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