Life Insurance

Life insurance is a contract between an individual and an insurance company in which the individual pays regular premiums and the insurance company pays out a death benefit to the individual’s designated beneficiaries upon the individual’s death. It is important because it provides financial security for the individual’s loved ones in the event of their death by helping to cover expenses such as funeral costs, outstanding debts, and living expenses. It can also be used as a source of savings or to provide for children’s education or retirement. Additionally, it can also be used as a source of income for the beneficiaries.