Life insurance is a contract between an individual and a life insurance company.
The insured person agrees to pay a premium to the insurance company in return for the life insurance company promising to pay out a death benefit to the insured person's beneficiary of choice upon the death of the insured person.
The life insurance policy may include specific exclusions for which the death benefit will not be paid out, for instance, if the insured person were to commit suicide within 2 years of purchasing the life insurance policy.
Basically, life insurance is a guarantee to pay out a specific amount of money to the person or people of your choice if you were to die. In return you pay the insurance company a premium on a regular basis.
Here's how you can learn about the two basic types of life insurance:
Term Life Insurance and Permanent Life Insurance.
