It’s a contract between an individual and an insurance provider, in which the insurance company gives financial protection to the policyholder in exchange for a consideration which, is known as premium.
Based on the terms and conditions of the contract, in the event of the death of the policyholder or, if the policy matures, the insurance provider shall pay the person or his family a lump sum amount, after a certain amount of time. There are different types of life insurance policies to suit the individual needs and requirements of the policy buyers.
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