A life insurance policy is a contract between the owner of the policy and the insurance company.
The owner agrees to pay premiums to the insurer on a regular basis, and in return, the insurer agrees to pay out a death benefit to the beneficiary of the life insurance policy upon the death of the insured person, subject to the terms, conditions and exclusions stated in the life insurance contract (policy).
There are two basic types of life insurance plans available: Term and Permanent.
Term life insurance is temporary coverage lasting for up to 30 years, while permanent life insurance provides lifetime protection.
Learn more about what to know about life insurance coverage.