Life insurance is a contract between an individual and an insurance company, where the individual (policyholder) pays regular premiums in exchange for a lump sum payment to beneficiaries upon the policyholder’s death. There are several types of life insurance policies, including term life insurance, whole life insurance, universal life insurance, and variable life insurance.

• Term Life Insurance: Provides coverage for a specific term, such as 10, 20, or 30 years. If the policyholder dies during the term, the beneficiaries receive the death benefit. If the policyholder survives the term, the coverage expires, and there’s no payout.

• Whole Life Insurance: Provides coverage for the entire life of the insured individual, as long as premiums are paid. It also accumulates cash value over time, which can be borrowed against or withdrawn.

• Universal Life Insurance: Similar to whole life insurance but offers more flexibility in premiums and death benefits. Policyholders can adjust their premiums and death benefits over time, within certain limits.

• Variable Life Insurance: Combines death protection with a savings component invested in various financial instruments such as stocks, bonds, or mutual funds. The cash value and death benefit can fluctuate based on the performance of the underlying investments.

Life insurance serves various purposes, including providing financial protection for dependents, paying off debts and final expenses, replacing lost income, funding education, and estate planning. The amount of coverage needed depends on factors such as age, income, number of dependents, debts, and financial goals.

When considering life insurance, it’s essential to assess your needs carefully, compare policies from different insurers, and consult with a financial advisor to ensure you choose the most suitable coverage for your situation.