Life Insurance is a contract between you and an insurance company, where the insurer promises to pay a designated beneficiary (a next of kin or spouse) a sum of money in exchange for a premium, upon the death of the insured person. Depending on the contract, other events such as terminal illness or critical illness can also trigger payment.
Life Insurance is designed to protect you or your family from the devastation that death or serious illness can leave behind. It provides the financial support to families that might be left with funeral bills, outstanding debt owed by the person insured, medical bills or even an inheritance tax bill in the case of perhaps, unmarried cohabitants or extended relatives.
Financial support is provided by means of a lump sum as mentioned above, and this lump sum can be used for whatever purpose the beneficiary sees fit. Be it medical bills, paying off a mortgage or looking after children that have lost a parent.
It is a product that has numerous benefits and provides peace of mind to you and your family.