Key Features of Life Insurance

Premiums: These are the payments the policyholder makes to keep the life insurance policy active. Premiums can be paid on a regular schedule (e.g., monthly, quarterly, annually) or as a lump sum, depending on the policy type.
Death Benefit: This is the amount of money paid out to the beneficiaries upon the death of the insured person. The amount is determined when the policy is purchased and is usually tax-free.
Beneficiaries: The individuals or entities (such as a spouse, children, or a trust) who receive the death benefit. Beneficiaries can be changed by the policyholder throughout the life of the policy.
Cash Value (for Permanent Policies): Some life insurance policies, such as whole life or universal life, build cash value over time. This is a savings component that grows tax-deferred, and the policyholder can borrow against it or withdraw funds.
Policy Term: The length of time the life insurance policy remains active. For term life, this is a set period (e.g., 10, 20, or 30 years). For permanent life insurance, the policy can last a lifetime.