Life insurance is an agreement between a policyholder and the insurer. This agreement speaks about the insurer who promises to pay a sum of money in exchange for a death of an insured person or the policyholder. Apart from the above-mentioned case, the holder can also claim insurance under critical illness or terminal illness from the insurer. Like car insurance, life insurance is also issued in two terms namely protection policy and investment policy. There is a lot of benefits in applying for life insurance. Many firms and corporations are providing life insurance to the people and explore them the uses and benefits for future purposes.
There are many types of life insurance like term insurance, universal insurance, and whole life insurance. Term life insurance provides financial protection to the holder for a specific period of time with certain terms and conditions. In most cases, term insurance is less expensive than long-lasting life insurance. Universal insurance is a genre of permanent insurance that provides lifetime coverage to the holder. This type is flexible as it may rise up or lower the premium amount throughout the life. Whole life insurance offers high premium payments than term life insurance.