A life insurance policy provides your family a lump sum payment if you happen to pass away as to ensure their financial security in the wake of your absence. It’s a simple, but very effective concept that can ensure your family’s livelihood for years to come.
When you buy a life insurance policy you essentially enter into a contract with the insurance company that guarantees a payment to your beneficiaries (Assuming you kept up with your premiums!). The upside to this process is there is almost no delay with the payment upon death and there is a factor of privacy since there is no probate period for your beneficiaries to go through—and this payment is typically tax-free!
If you have a Term life insurance policy, this period of protection will only last through the life of the policy, 10, 20 years for example, while a Permanent policy lasts through your death assuming you always pay your premiums on time. Both types of insurances can be very useful when utilized correctly, so find which one is the best fit for you!