Life insurance or life assurance is a contract between the policy owner and the insurer, where the insurer agrees to pay a designated beneficiary a sum of money upon the occurrence of the insured individual’s or individuals’ death or other event, such as terminal illness or critical illness. In return, the policy owner agrees to pay a stipulated amount called a premium at regular intervals or in lump sums.
Why Is Life Insurance Important?
Life insurance policies are important because they provide many options for debt repayment, income replacement and estate planning for your family. Without a life insurance policy, your death could spell financial disaster for your heirs and could hurt their financial future.
- Income Replacement
If you are a working spouse, chances are your family relies on your income to pay bills. A life insurance policy can help to replace that income when you’re gone.
