A life insurance policy is a contract between an insurance company and a policyholder that states that the life insurer would, in exchange for a premium, pay a predetermined sum of money after a predetermined amount of time or upon the death of the life guaranteed.
There are only two straightforward categories of life insurance:
1. Pure Protection plan i.e., Term Insurance Plan
2. Savings Plan
Pure Protection plans are especially made to safeguard your family’s financial future by offering a lump sum payment in the event of your absence. A savings plan, on the other hand, is a financial instrument that offers life insurance benefits while assisting in the planning of long-term goals like home ownership, tuition for children’s further education, and more.