About Life Insurance
What is life insurance and why do I need it? Life insurance is generally regarded as a contractual relationship between the individual or entity that buys the policy (called the "policy owner" or "policy holder") and the insurance company, where the risk insured against is the death of the insured while the policy is in force. The insurance company promises to pay death benefits (a sum of money) upon the occurrence of the the death of the insured's (the person whose life is insured against). In exchange, the policyowner promises to pay a pre-determined amount of money (called "premiums") at specific intervals, or in a lump sum.
