Life insurance is a contract between an insurance policy holder and an insurance company, where the insurer agrees to pay a designated beneficiary an amount of money (the “death benefit”) upon the death of the insured person. The aim of life insurance is to provide financial protection to the insured’s family in the event of their death. The death benefit may be used to pay for funeral expenses, medical bills, college tuition or other living expenses. Premiums are paid regularly and the death benefit is paid out to the beneficiaries upon the death of the insured.
