What Is Life Insurance?
Life insurance is a contract between an individual and an insurance company. The individual, also known as the policyholder, makes regular premium payments to the insurance company. In exchange, the insurance company will provide a death benefit to the policyholder’s designated beneficiary after they pass.
Listed below are different policy types:
Whole Life Insurance
Whole life insurance provides coverage throughout the life of the insured person. It provides a guaranteed death benefit which is tax-free. In addition to paying a tax-free death benefit, whole life insurance also contains cash value growth.
Term Life Insurance
Term life insurance covers a policyholder for a specified period of time. It does not grow cash value. The benefits from the policy is realized if the policy holder dies during the term of the policy.
