What is Life Insurance?
Life insurance is a written agreement (contract) between an insurance company and a policy holder.
The purpose for a life insurance contract is to pay a specific amount of money (death benefit) to the named beneficiaries, when the insured dies. This contract consists of payments from both parties. The insured agrees to pay the insurance company in the way of an agreed premium (usually monthly or annually) and the insurance company agrees to pay the named beneficiaries (this may be one person or more than one person) an agreed upon amount, at the time of the insureds death.
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