Life insurance is a contract between the policyholder (an individual) and an insurance company, where
the insurance company agrees to pay a sum of money to the beneficiary during:
- The date of maturity or
- Specified dates at periodic intervals or
- Unfortunate death if it occurs earlier
In exchange for this payout, the policyholder makes regular premium payments to the insurance
company.
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Life insurance eliminates risk and substitutes certainty for uncertainty. Further, it provides financial protection to the policyholder and its dependents. In case of an untimely death of the policyholder, life insurance plays a crucial role and comes to the timely aid of the its dependents and family. This death benefit offered by the company covers various expenses, such as funeral costs, outstanding debts, mortgage payments, and provide income replacement for the family Read Less