There are many different forms of life insurance contracts, which promise to pay a designated beneficiary a sum of money upon the death of an insured person. Other events, such as terminal illness or critical illness or injury, may also trigger a payment. The premiums for this contract is generally paid regularly, or as a single lump sum.

Life insurance is important as the cost of funeral expenses increases. Life insurance payouts can also help the family as a way to pay down debt or ensure that loved ones are taken care of financially after a policy holder’s death.

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