Life insurance is a type of insurance that will financially protect named beneficiaries in the event that the insured dies.
Life insurance is a legal contract that guarantees the insurer pay a defined amount of money to the named beneficiaries in the event that the insured passes away. Other events might call for payment depending on the insurance contract. An example of an event, other than death, that could call for payment is terminal or critical illness. Purchasing life insurance can either be done with payments over time or as one lump sum. There are many different types of life insurance, but they all have the same primary goal for the insured: That goal is to make certain that after the insured’s death, his/her loved ones are left in the best possible situation.