Life insurance is a contract between you and an insurance company. You pay regular premiums,
and in return, the company promises to pay a death benefit (a lump sum of money) to your
chosen beneficiaries if you pass away while the policy is active.
Basic Steps:
Choose a policy – You pick the type (like term or whole life), the coverage amount, and the
length of coverage (if it’s term).
Apply and qualify – You answer health and lifestyle questions; and if you are eligible you get
approved.
Pay premiums – You pay monthly or annual premiums to keep the policy active.
Policy stays in force – As long as you pay, your beneficiaries are protected.
Payout happens – If you pass away while the policy is active, the insurance company pays the
benefit to your beneficiaries.
Types of Life Insurance:
Term Life Insurance – Covers you for a specific time period (e.g., 10, 20, or 30 years).
Whole Life– Covers you for your entire life and may build cash value over time.
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