Life Insurance

Life insurance is insurance that makes a payment to a specified beneficiary, usually when the policyholder dies. The primary purpose of life insurance is to provide financial support to dependants (usually spouses and children) of the policyholder in the case of his or her premature death. In doing so, life insurance replaces the lost income generated by the insured, allows for the repayment of accumulated debt, and covers any expenses that may coincide with death, including medical, funeral, estate, and probate costs. Therefore, life insurance policies are contractual savings policies, and the firms that provide them are contractual savings institutions, in that the policy pays a regular premium in return for payment on death or disablement, or at a specified maturity date. The insurer collects ...