LIFE ASSURANCE

Key features and aspects of Life insurance include:
Death Benefit: The primary purpose of life insurance is to provide a death benefit to the beneficiaries listed in the policy. Upon the death of the insured, the beneficiaries receive a lump-sum payout, which is typically tax-free.

Premiums: Policyholders pay regular premiums, usually monthly, quarterly or annually, to keep the life insurance coverage active. The premium amount is determined based on various factors, including the insured's age, health, occupation, and the coverage amount.

Types of Life Insurance:
a. Term Life Insurance: Provides coverage for a specific term or period, such as 10, 20, or 30 years. If the insured passes away during the term, the death benefit is paid to the beneficiaries. Term life insurance is generally more affordable but does not build cash value.

b. Whole Life Insurance: Offers lifelong coverage and includes an investment component called cash value. Part of the premium goes toward building the policy's cash value, which can be withdrawn or borrowed against during the insured's lifetime.