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What Is a Life Insurance Policy?
A life insurance policy is a contract between an individual and an insurance company,
where the insurer agrees to pay a designated sum, known as the death benefit, to the
policyholder’s beneficiaries upon their passing. In exchange, the policyholder pays
regular premiums, which can be monthly, quarterly, or annually. The primary purpose
is to provide financial support to dependents, covering expenses like daily living
costs, mortgage payments, or education fees.