Life insurance is a type of financial security that pays out to the insured person in the event of a death. Life insurance policies provide funds to help pay for living expenses during this time, such as money for mortgage payments, college tuition, and retirement savings.
The different types of life insurance include term-life insurance and permanent-life insurance. Term life covers people who want coverage with a specified length (usually 10 or 20 years). The policy has a set premium that will be paid up-front. In the event of the person's death, the insurance company will pay out the value of the policy to a beneficiary. Permanent insurance typically lasts for a person's life and pays out even if they die unexpectedly. The insurance also accumulates cash value, usually in interest-bearing accounts that allow policyholders to invest their money as they see fit.
The different types of life insurance include term-life insurance and permanent-life insurance. Term life covers people who want coverage with a specified length (usually 10 or 20 years). The policy has a set premium that will be paid up-front. In the event of the person's death, the insurance company will pay out the value of the policy to a beneficiary. Permanent insurance typically lasts for a person's life and pays out even if they die unexpectedly. The insurance also accumulates cash value, usually in interest-bearing accounts that allow policyholders to invest their money as they see fit.
