Life Insurance is a type of policy that in return for a monthly premium pays out a sum of money (decided by you when the costs are taken out) to your beneficiaries in the event of your passing. Unfortunately, many people do not purchase it and leave their families scrambling to pay funeral costs and other bills after their loved one’s death. One of the benefits of life insurance is that you can buy just enough to pay for funeral costs or purchase a policy that not only pays a death benefit but earns money during the life of the policy. There are two main types of life insurance—term and whole life.
Term Life- is the most basic policy you can get. Generally purchased in terms of one to 30 years and only pays out the benefit if death occurs during the policy term.
Whole life or permanent insurance– is designed to pay a death benefit whenever the policyholder dies providing the policy premiums are current.