How It Works
You buy a policy and pay the monthly or annual fees (a.k.a: premiums) on time. If you die the insurance company pays your family, or whoever you named as the beneficiaries, the amount of money specified in the policy. Like the lottery, there’s a choice to receive the money all at once (lump sum) or in installments (annuity). Unlike the lottery, this is an investment that actually pays off.
Types of Life Insurance
There are two main types of life insurance: term and permanent (or whole life).