What is the definition of Life Insurance?
Life insurance is a contract between the insured and the insurer, in which the insurer promises to pay the beneficiary a lump sum in the event of the death of the insured. Depending on the contract, other events such as a chronic illness or serious illness can also cause payment.
What is the purpose of Life insurance?
The main purpose of life insurance is to provide financial benefits to those who rely on the premature death of the insured. The policy pays a stated amount called the death benefit to the beneficiary.
Other events such as a chronic or serious illness can also cause payment. But, it depends upon the insurance contract.
Types of Life Insurance
List of major types of life insurance.
- Term life insurance
- Whole life insurance
- Endowment life insurance policy
- Money-back life insurance policy
- Child Insurance policy
- Unit Linked insurance plans
- Retirement insurance plans
- Group life insurance
- and, more.