Life insurance is protection against financial loss because of the death of an earning member. It is the promise an insurance company keeps, to pay the beneficiary a specific amount of money on the policyholder?s death. This is given in exchange for the timely payment of premiums.

There are many insurance companies that carry out aggressive marketing of their policies. It is important for a prospective buyer to study the market before deciding on a policy. It is important to keep in mind the financial stability of the insurance firm before taking a policy. There are also new private sector companies entering the fray. They are promoting their policies as an investment option, apart from the life insurance.

The insurance companies generally promote whole life insurance with exorbitant premiums as they get more commission on them. It is however worth knowing that term benefits with affordable premiums give cover for the term without any major frills.