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What is Life Insurance?

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Life insurance is the financial protection available for purchase to protect people and their families against any monetary loss at the time of one's death. Insurance policies are contracts in which the insurance company states they will pay a beneficiary a certain amount of money which is stated in the contract at the time of the policyholders death. Life insurance companies require that policyholders pay specified premiums in exchange for the protection they offer you for your loved ones. Having a life insurance policy can ensure that your family will be taken care of after the time of your death by allowing money that will: take the place of your income, be put into a college fund for your children, pay off mortgage or other large debts, help pay estate taxes, provide for funeral expenses or medical bills, or allow for an emergency fund for your family.

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