Like any other insurance, life insurance is a financial protection product. This means that you purchase it to safeguard your finances in the event of unexpected circumstances.
When you buy life insurance, you are acquiring the ability to claim a sum of money from your insurer when one of these three situations occurs during the policy’s term:
Disability: when the insured person suffers a disabling accident that permanently prevents them from working.
Death: when the insured person passes away before the policy’s expiration date.
Survival: when the insured person reaches the policy’s expiration date.
Thus, life insurance is designed to provide you with peace of mind and offer support to you and your loved ones in the event of one of the aforementioned situations.
However, keep in mind that it depends on the insurance’s features whether it covers all three unexpected events, and you decide which situations you are protected against.