Life insurance is a contract between an individual and an insurance company, where the insurer promises to pay a designated beneficiary a sum of money upon the insured person’s death, in exchange for premium payments.
Financial Security: Provides financial support to beneficiaries, ensuring they are taken care of after the insured’s death.
Debt Coverage: Can be used to pay off debts such as mortgages, car loans, and credit card balances, preventing financial burden on loved ones.
Estate Planning: Helps in estate planning by providing liquid assets to cover estate taxes and other expenses.
Peace of Mind: Offers peace of mind knowing that loved ones will have financial protection in the event of the insured’s death.
Cost: Premiums can be expensive, especially for older individuals or those with health issues.
Complexity: Understanding different types of policies and their terms can be complicated and confusing.
Exclusions: Policies may have exclusions, such as not covering certain types of death or pre-existing conditions.
Policy Lapse: If premiums are not paid, the policy can lapse, resulting in the loss of coverage and premiums already paid.
