This is probably the most popular type of insurance. So what is life insurance? This is designed to give you an assurance that your dependents or the people you will leave behind will be taken cared of when you pass away.
Your dependents will be able to receive money you invested as a lump sum or regular payouts. The amount they will receive will depend on the premium of your policy.
Contracts are usually broken down to Protection and Investment Policies. Protection policy is designed to provide your dependents with benefits in the event that you pass away. Investment policy on the otherhand, is designed to manage your investment by growing your capital. Bear in mind that there are also limitations to this type of insurance. Though it primarily covers death, you may not be able to claim the benefit if you commit suicide or die as a result of drug abuse. In case you have pre-existing medical conditions and becomes the cause of your demise, your insurance provider may not release your claim as well. There are certain products that may be added on top of your life insurance such as critical illness or disabilities. These are not part of your coverage and are optional.