A life insurance policy is an agreement between a life insurance company and a policyholder that offers financial protection and calls for the insurer to pay a predetermined sum to the policy's beneficiary in the event that the covered person passes away too soon.
According to the terms of the contract, the policyholder pays the insurance firm a certain sum as the policy premium in exchange for a life insurance policy. In the event that the life insured experiences an unfortunate event, a lump sum payment is made. You may receive a maturity benefit from some policies at the conclusion of the policy term.
The premium you pay to obtain the cover is this small amount of money. The coverage should initially only be valid for one year, and the cost of the premium.
