Life Insurance

Life insurance is a contract between an individual and an insurance company where, in exchange for regular premium payments, the insurer promises to pay a designated sum (the death benefit) to specified beneficiaries upon the insured person's death; the main types include term life (coverage for a set period), whole life (coverage for life with cash value), universal life (flexible coverage with cash value), variable life (investment-linked), and final expense insurance (for end-of-life costs).