What is Life Insurance?

 

Life insurance is a contract between the policy holder and the insurer where the insurer promises to pay a designated beneficiary a sum of money (the "Sum Assured") upon the death of the insured person. Depending on the contract, other events such as a terminal illness or critical illness or disability may also trigger payment. In return, the policy holder agrees to pay a stipulated amount (the "premium") at regular intervals or in lump sums.

 

Life Insurance ensures that your family will receive financial support in your absence. Put simply, Life Insurance provides your family with a sum of money should something happen to you.

​

The value for the policy owner is the “peace of mind” in knowing that his / her death will not result in financial hardship for the family.