What is the definition of Life Insurance?
Life Insurance is the kind of insurance that pays for a benefit in the event of the insured person's death.
The insurance company pays death benefits to the beneficiaries of the insured person as long as the policy remains in force and the premium payments are current.
Life insurance is taken out by people or businesses for several reasons. A breadwinner may want to ensure that his family is not burdened with financial loss at the event of his untimely death. Businesses may also want to insure key employees since their death may mean economic losses for the company.
Life insurance may be bought by individuals or may be offered by employers to their employees. The premiums associated with this type of coverage are based on mortality tables, as well as other factors - such the insured person's occupation and health.
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