Life insurance is an insurance contract or an agreement that offers a financial protection to the deceased's dependents in case of his/her death. Life insurance may also provide you financial protection on the maturity of a policy however different types of life insurance work in different ways.
Under life insurance, you might want to ensure that your family is protected with a lump sum or you might want to cover the home mortgage & loan costs to ensure they have a roof over their head but there are different policies for different needs. You may also choose savings and investment option that offers financial benefits to support your kids education and wedding expenses at a later stage.
Long-term or whole life insurance is there to provide a level reassurance where the cover will pay out a lump sum that is agreed when the policy is taken out depending upon how much contribution you have been paying for how long. This can provide financial stability and reassurance for your family.
Finally, critical illness insurance offers protection should you be diagnosed with a critical illness as defined by your insurer. This can cover a wide range of illnesses but only the amount that you are covered for will be paid out.