Life insurance is a contract between an individual and an insurance company, where the company provides a financial benefit to the policyholder’s chosen beneficiaries upon the policyholder’s death.

In exchange for regular premium payments, the insurance company agrees to pay out a lump sum of money, known as the death benefit, to the beneficiaries as specified in the policy.


The purpose of life insurance is to provide financial protection and support for the policyholder’s loved ones in the event of their death, helping to cover expenses like funeral costs, outstanding debts, and ongoing living expenses.