Life insurance is a contract between you and an insurance company. Essentially, in exchange for your premium payments, the insurance company will pay a lump sum known as a death benefit to your beneficiaries after your death. Your beneficiaries can use the money for whatever purpose they choose.
  • Life insurance provides financial security to your loved ones after your demise. There are many reasons to buy life insurance, depending on the stage of your life you are at. Different types of life insurance policies fulfil different needs. However, one of the prime benefits of life insurance is the guarantee that your surviving dependents will have the financial support they need in the future. Every single person faces the same two fears—the fear of dying too soon and the fear of living too long. If you die too soon, you leave behind dependents who do not have the financial wherewithal to take care of themselves. If you live too long, you are likely to run out of money and become dependent yourself. Life insurance plans help ease both these fears.

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