A life insurance policy is simply a contract between the policyholder and the insurance company. There is a wide variety of different types of life insurance policies but the concept is simple: by taking out a life insurance policy, you are transferring the risk of your death and the lost earnings this would represent for your loved ones, to the insurance company, at the expense of paying premiums over a certain period. Life insurance provides the policyholder peace of mind, knowing that people he or she cares about will be provided for should he/she die. It also provides those named as beneficiaries to the policy very real security if this happens. (more…)