The concept of life insurance is relatively straight-forward. Under a life insurance policy, the insurance company pays the insured amount on the death of the person whose life is insured. The benefit can be paid to a nominated beneficiary or to the estate of the deceased.
Most modern day life insurance policies will pay the insured benefit early if a terminal illness is diagnosed and the insured person has less than 12 months to live.
Life insurance premiums are relatively affordable but can become expensive in later years.