What is life insurance?
There are many different types of life insurance policies, all of which are designed to serve different needs. In most circumstances however, life insurance provides a way to replace the loss of income that occurs when someone dies.
A Life Insurance Policy is a contract between the insured person, and the insurance company providing the insurance. If you die and the contract is in force, the insurance company pays a specified sum of money, usually called a Death Benefit, free of income tax, to the person or persons you name as beneficiaries. The beneficiaries can usually use the proceeds without restriction.
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