Life insurance

Life policies are legal contracts and the terms of each contract describe the limitations of the insured events.

What Is Life Insurance?

Life Insurance is a legal contract between you and an insurance company. When you die, it provides a tax-free financial payout to beneficiaries of your choosing. In exchange, you make regular premium payments to your insurer for as long as the policy is active.

Life Insurance acts as a financial safety net for your family. If you die while the insurance is active, your respective insurance company will pay a sum of money to the person who is beneficiary.
In addition to income replacement, Life Insurance can also be used to pay for funeral expenses, cover outstanding debts, or leave a legacy for loved ones or charitable organisations. Moreover, it can also be used for long term care to wealth transfer strategy, making it a versatile tool for those with complex financial planning or health-related situations.

Types of Life Insurance

Many different types of life insurance are available to meet all sorts of needs and preferences. Depending on the short- or long-term needs of the person to be insured, the major choice of whether to select temporary or permanent life insurance is important to consider.

Term life insurance

Term life insurance is designed to last a certain number of years, then end. You choose the term when you take out the policy. Common terms are 10, 20, or 30 years. The best term life insurance policies balance affordability with long-term financial strength.

Permanent Life Insurance

Permanent life insurance stays in force for the insured’s entire life unless the policyholder stops paying the premiums or surrenders the policy. It’s more expensive than term.