What is Life Insurance?
Life insurance is like a financial safety net. You pay a bit regularly, and if something happens to you, your loved ones get money.
- Types of Life Insurance
- Term Insurance
Term insurance covers you for a set time, like 10 or 20 years. If you pass away during this period, it gives money to your loved ones for financial support.
- Who should buy a Life Insurance Policy?
Anyone with family, debts, or financial goals should consider buying a life insurance policy.
- Learn a few terms about Life Insurance
Premium: The amount you pay to the insurance company for coverage.
Policyholder: The person who owns the life insurance policy.
Beneficiary: The person or entity designated to receive the death benefit in case of the policyholder’s demise.
Death Benefit: The sum of money paid to the beneficiary when the policyholder passes away.
Term Life Insurance: Coverage for a specific period, providing a death benefit if the policyholder dies during that term.
Whole Life Insurance: A type of life insurance that covers the policyholder for their entire life and includes a cash value component.
Underwriting: The process insurers use to evaluate the risk and determine the premium for a policy.
Rider: An additional feature or benefit that can be added to a life insurance policy.
Cash Value: The savings component of a whole life insurance policy that accumulates over time.
Term: The length of time the life insurance policy is in effect.
