A life insurance policy is a contract between an individual and an insurance company that provides a financial benefit to beneficiaries upon the policyholder's death.

Key components include:

Death Benefit: The amount paid to beneficiaries upon the policyholder's death, which can help cover expenses like funeral costs, debts, and living expenses.

Premiums: Regular payments made to the insurer to maintain the policy, which can be paid monthly, quarterly, or annually.

Term Life Insurance: Provides coverage for a specific period (e.g., 10, 20, or 30 years) and pays a death benefit only if the policyholder dies during the term.

Whole Life Insurance: Offers lifelong coverage and includes an investment component that builds cash value over time, which the policyholder can borrow against or withdraw.

Universal Life Insurance: A flexible policy that allows adjustments to premiums and death benefits, while also accumulating cash value.

The cost of life insurance depends on factors such as the policyholder's age, health, coverage amount, and type of policy.