Tag: policy

Which components make up a life insurance policy?

Life insurance provides financial security and peace of mind for policyholders and their beneficiaries in the event of an untimely death. It consists of several components, including the death benefit, premiums, riders, and policy duration. The death benefit is the amount of money paid by the insurance company to the beneficiary upon the death of the policyholder. Premiums are the payments made by the policyholder to the insurance company to keep the policy active. Riders are additional coverage options that may be added to the policy for an additional cost. The policy duration is the length of time the policy will remain active. Life insurance is an important safety net for policyholders and their families.