What is life insurance and how does it work?
Life insurance is a policy or contract between you and a life insurance company that can last for the rest of your life or for a specific time period. This contract guarantees that your beneficiaries will get a tax-free cash payment (also called the death benefit) when you die – this is provided you meet all the requirements in your policy. The exact amount they’ll get depends on how much coverage you buy and the type of policy you select.