Life insurance offers a way to replace the loss of income that occurs when someone dies. It is a contract between you as the insured person and the company that is providing the insurance. If you die while the contract is in force, the insurance company pays a specified sum of money free of income tax to the person you name as beneficiaries. It is a insurance for you and your family's peace of mind. Its function is to help beneficiaries financially after the owner of the policy dies.
It can also be a form of savings in the long run if you purchase a plan, which offers the option of contributing regularly. Additionally, a little known function of life insurance is that it can be tied in with a person's pension plan. A person can make contributions to a pension that is funded by a life insurance company. These are considered private pension arrangements.
TYPES OF LIFE INSURANCE:
1. Term Life Insurance
2. Whole Life Insurance
3. Universal Life Insurance
4. Children's Life Insurance
5. Senior Life Insurance
6. Mortgage Protection Life Insurance