Insurance life cover, also known as life insurance or life assurance, is a policy that provides financial protection to your beneficiaries in the event of your death. Here's a brief overview:
- How It Works: You pay regular premiums (monthly or annually) to an insurance company. In return, the insurer promises to pay a sum of money, known as the death benefit, to your named beneficiaries when you pass away.
- Types of Life Insurance:
- Term Life Insurance: Provides coverage for a specific period, such as 10, 20, or 30 years. If you die within this term, your beneficiaries receive the death benefit
- Permanent Life Insurance: Includes whole life and universal life insurance, which provide coverage for your entire lifetime as long as premiums are paid. These policies often have a savings component called cash value.
Life cover can help ensure that your loved ones are financially supported, covering expenses like funeral costs, debts, and living expenses