What is life insurance and how does it work? A beginner's guide
Life insurance can be a smart tool for protecting your loved ones. Here's what to know before buying a policy.
Life insurance is a type of insurance that provides a payment to your loved ones upon your death. You designate a beneficiary or beneficiaries, pay premiums, and if you pass away during the policy period, the beneficiary receives the death benefit, which is determined by the coverage amount. To obtain life insurance, you'll usually need to complete a medical questionnaire and, in some cases, a medical exam.
The cost of life insurance depends on factors such as age, health, gender, term, type of insurance, and coverage amount.
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