Life Insurance Policy
A life insurance policy is a contract between an individual and an insurance company. In this agreement, the individual pays regular premiums, and in return, the insurance company promises to provide a financial payout to designated beneficiaries upon the individual's death. This payout can help cover expenses such as funeral costs, debts, and living expenses for loved ones.
There are different types of life insurance policies, including term life and whole life. A term life policy provides coverage for a specific period, while a whole life policy offers lifelong coverage and may accumulate cash value over time.