Life insurance is a contract with an insurance company where you make payments over a period of time. In return, the insurance company provides money to your family after you die.
Life insurance is a way to ensure the financial security of your family after your death. Like all other types of insurance, it is a financial tool used to minimize a specific risk—the risk that your family will be left in poverty if you die and are unable to provide for them.
- Insured—the person who takes out the insurance policy
- Death Benefit—the amount of money the insurance company will pay in the event of the insured’s untimely death
- Designated Beneficiary—the person who will benefit from the life insurance payout, normally the insured’s spouse or children
- Premium—the amount of money that the insured pays monthly to secure a life insurance policy
- 41% of the U.S. population doesn’t have life insurance.
- 93% of Americans say that life insurance is something most people need.
- Life insurers pay out $1.5 billion every day.