The person who purchases a life insurance policy enters into a contract with the insurer of that policy.  A common question is, do I need a life insurance policy?  Nobody will be able to answer that question for you.  You need to evaluate your situation in order to obtain the answer.  If you have young children that are financially dependent on you, then it would be wise to insure yourself so that your family is secure in case of your death.  If you have purchased an insurance policy and something untoward happens to you, then a specified amount of money will be paid to the nominated person.  Any person or a family member can be nominated as the beneficiary of the insurance policy.

Term Life Insurance

Term life insurance is also called term insurance.  Under term life insurance, the insurance cover is provided for a specific period of time, or term, such as one, five, ten, or 15 years.

Universal Life Insurance

A universal life insurance policy allows you to control the premium amount and where the insurance company can invest it.  The insurance company may be instructed to invest in bonds, shares, or mutual funds so that you can take advantage of interest rates in the market.

Whole Life Insurance

Whole life insurance provides an insurance cover for the entire duration of your life.  Upon your demise the beneficiary is paid the amount that you are insured for.