Life insurance is one way you can provide financial support for loved ones after you die. When you open a life insurance policy, you will pay a regular premium – often monthly or annually – in exchange for coverage. As long as your policy is active when you die, the insurance company will pay out a lump sum, also known as a death benefit, to the policy beneficiaries.
Even though many life insurance policies work the same way, each type has significant differences that further define how they work. These differences can include how long the coverage lasts, if the policy includes an investment component, and whether or not you can access funds before your death. Understanding these differences can help you select the best policy for your needs. More>>