What is life insurance?
Life insurance is a contract between you and an insurance provider who will pay a death benefit upon death and is funded through premium payments. Think of it as a kind of financial safety net that allows you to live your life fully while being financially
protected for the unexpected.
The policy is purchased for a set amount of coverage, which is the amount the insurance provider will pay your beneficiary. This payout, called a death benefit, can be used to cover funeral costs or large medical bills, or expenses like housing, food,
education, and anything else they might need.
How does life insurance work?
There are a wide variety of life insurance coverages. In general, your life insurance policy remains active as long as the contract terms are met. This usually means a death benefit is payable upon death as long as the premium or funding requirements
are met.
Premiums and other policy characteristics can vary by many factors including the amount of coverage you need, as well as your age and health. If death occurs while the coverage is active, your beneficiaries can submit a claim to receive the payout.
