What is life insurance ?-How it’s work ?

Life insurance is a contract between an individual and an insurance company, where the insured agrees to pay a sum of money (death benefit) to named beneficiaries later on in the event of the insured’s death. The policyholder pays premiums to the insurance company either periodically (monthly, quarterly, annually, etc.) or as a lump sum.

Life insurance for family


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There are different types of life insurance policies, but the two main categories are:

Term Life Insurance:

This type of policy provides coverage for a specific period, such as 10, 20, or 30 years. If the insured person dies during the term of the policy, the beneficiaries will receive the death benefit. If the insured person survives the term, the coverage ends, and there is no payout.

Permanent Life Insurance:

Permanent life insurance provides coverage for the entire life of the insured person, as long as premiums are paid. There are several subtypes of permanent life insurance, including whole life, universal life, and variable life. These policies often include a cash value component, which accumulates over time and can be accessed by the policyholder through withdrawals or loans.

How life insurance works:


The policyholder applies for it by providing information about their health, lifestyle, and other factors relevant to determining their insurability.


The insurance company evaluates the application and assesses the risk of insuring the individual based on factors such as age, health, occupation, and hobbies. This process determines the premium rate.

Premium Payments:

The policyholder pays premiums to the company, either on a regular basis or as a lump sum.

Coverage Period:

If the insured person dies during the coverage period (for term life insurance) or at any time while the policy is in force (for permanent insurance), the beneficiaries will receive the death benefit.

Death Benefit Payout:

When the insured person dies, the beneficiaries file a claim with the insurance company, which then pays out the death benefit according to the terms of the policy.

It’s provides financial protection and peace of mind to the insured person’s loved ones by helping them cover expenses such as funeral costs, outstanding debts, mortgage payments, and ongoing living expenses in the event of the insured person’s death.

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