What is a Life Insurance?
In brief, life insurance is a type of insurance that provides financial assurance for the survivors of the deceased under its death coverage (the main coverage) in case the insured dies. Life insurance assures the insured's beneficiaries or legal heirs under an insurance policy that the insured designates in advance.
You can get assured in the condition of permanent injury and financial loses as well under the life insurance which can additionally be purchased with collateral. In this sense, life insurance policies may help you and your relatives maintain your living standard thanks to financial means that offer in case of a possible loss of life, permanent disability or critical disease, and this way you can leave your financial concerns behind you.
Even though life insurance was created as a policy which can be used in case of the death of the insured at the beginning, its scope has been extended by time to be used also as saving insurance. Insurance companies can also apply a life insurance based on savings, in which people can secure their own future together with additional guarantees.
The difference between life insurance and personal accident insurance is as follows:
The latter offers insurance for death, disability and treatment expenses as a result of accidents while life insurance is designed to provide financial support in case of death regardless of its reasons.