Life insurance is a contract between you and an insurance company that provides financial protection for your loved ones in the event of your death.

In exchange for paying regular premiums, the insurer promises to pay a lump-sum amount, known as a death benefit, to your chosen beneficiaries upon your passing. This payout can help cover essential expenses like mortgage payments, debts, living costs, or funeral expenses. Many life insurance policies also include terminal illness cover, meaning if you’re diagnosed with a terminal illness and your life expectancy is less than 12 months, the death benefit can be paid out early. This feature provides additional peace of mind, ensuring your family has financial support when they need it most.