Life insurance is a legally binding contract that pays a death benefit to the policy owner when the insured dies.
For a life insurance policy to remain in force, the policyholder must pay a single premium up front or pay regular premiums over time.
When the insured dies, the policy’s named beneficiaries will receive the policy’s face value, or death benefit.
Term life insurance policies expire after a certain number of years. Permanent life insurance policies remain active until the insured dies, stops paying premiums, or surrenders the policy.