Life Insurance is a type of insurance that provides financial protection to beneficiaries upon the death of the insured person or after a specified period. Its main purpose is to ensure financial security for dependents, cover debts, or serve as a savings and investment tool.
Main Components of Life Insurance
◦ Term Life Insurance – Provides coverage for a specific period (e.g., 10, 20, or 30 years). If the insured dies during the term, beneficiaries receive the payout.
◦Whole Life Insurance – Offers lifetime coverage and includes a savings (cash value) component that grows over time
◦Credit Life Insurance -Covers outstanding loans if the borrower dies or becomes permanently disabled
