A life insurance policy is an agreement between the policyholder and the insurance company. The company promises to pay a certain amount of money as decided at the inception of the policy upon the death of the individual in exchange for payment of fixed amounts of money on a regular basis. The amount that the insurer promises to provide is known as the sum assured and the periodic amount provided to the insurer is called the premium.
Life insurance policies can be bought both online and offline. Insurance agents will help access the best life insurance policies so that individuals can make the right decisions. Many insurers offer special online insurance products that can be bought through their official website with just a few clicks. Many third-party websites, too, offer life insurance policies online. It is important to shop around to find the insurer that offers the best suitable comprehensive plan at an affordable price.
The amount provided on the death of the life assured, known as the death benefit, is provided to the nominee/beneficiary as chosen by the policyholder. The nominee is required to notify the insurer and file a claim in order to receive the benefit.