Life insurance is a contract between an individual (the policyholder) and an insurance company. In exchange for regular payments known as premiums, the insurer agrees to pay a lump-sum amount (known as the death benefit) to designated beneficiaries upon the policyholder’s death. The purpose of life insurance is to provide financial protection and security to dependents and loved ones after the policyholder passes away.

Importance of Life Insurance
Life insurance plays a crucial role in financial planning. It ensures that your family or dependents are protected financially in your absence. Life insurance can:

Replace lost income

Pay off debts (like mortgages, loans, or credit cards)

Cover funeral and burial expenses

Fund children's education

Maintain the family’s standard of living

Leave an inheritance or charitable donation