Question

What is life insurance?

Answer 1

Life insurance is a product offered by insurance companies which provides for a tax-free benefit at the death of the policy insured. It is often used to provide a lump some of money to cover basic living expenses for a family.

Answer 2

Life insurance or life assurance is a contract between an insurance policy holder and an insurer or assurer (insurance company). The insurance company agrees to pay the beneficiary a sum of money in exchange for a premium, upon the death of the insured person. The insured person may be the policy holder himself or a third person other than the beneficiary.