Life Insurance

How does life insurance work and what does it cover?
Insurance, Life Insurance

How does life insurance work and what does it cover?

Introduction: Nobody likes to think about death, but it's something all have to face at some point. If something happens to you, would your loved ones be able to cope financially? That's where life insurance comes in. This type of insurance policy helps protect your loved ones financially in the event of your death. It'll answer these questions and more in this post. What is life insurance? A life insurance plan is a contract between a person and an insurance plan company. The insurer agrees to pay a designated beneficiary a lump sum payment if the policyholder dies in exchange for premium payments. There are many different life insurance policies, but term life insurance and whole life insurance are the most common. Term life insurance is temporary and pays out only if the polic...