What is life insurance?
It is a policy you take out on your life or a loved ones life in case one of you should die. It is a type of death insurance, which means when a loved one dies, the partner or beneficiary will receive a lump sum. It is financial protection in case another can no longer provide for his or her family. It will help the people you care about get back on their feet and be able to survive without your source of income.
Two types of life cover
Term life insurance
It is cover that you take out for only a certain time, anything between five to thirty year, in other words, you will only be protected within this period. When the policy reaches it expiration date, you will either have to renew it or switch over to whole life cover.
Whole life insurance
It is a policy that will cover you and your family for your entire life’s, even if you reach the age of hundred.
If you have someone that you want to take care of, you can get life insurance to do that for you. Look at funeral insurance as well, it goes hand-in-hand with life insurance.