LIFE INSURANCE
Life insurance is a contract between an insurance policy holder and an insurer,
where
the insurer promises to pay a designated beneficiary sum of money upon
the death of
the insured person.
Life-based contracts tend o fall into two major categories:
* Protection policies:Designed to provide a benefit in the event of
specified event,
typcially a lump sum payment.A common, form of this design is term
insurance.
* Investment policies:Where the main objecive is to facilitate the growth
of capitalby
regular or single premium.Common form is whole life.