Life Insurance
DEFINITION
Life insurance is a contract where you pay a cost so the insurer takes on certain financial risks related to your life or your family's future. By doing this, you transfer that risk to the insurer. Common types include whole life participating insurance, term life insurance, and investment-linked insurance.
ELI5
It is like paying for financial protection so your family can get help if something serious happens to you.
Other related terms
Contract For Difference (CFD)
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Bond Funds
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Cost-Push Inflation
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Endowment Insurance
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