A life insurance or (should we rather call it) a death cover (as it only pays out on death unless you get diagnosed with something terminal) is designed to pay out a lump-sum (or a monthly income, depending upon your preference) to your family should you die during the term of the policy. So for e.g. if you took out a policy at the age of 40 for a 25 years term, that policy will only ever pay out if you die during those 25 years i.e. before your 65th birthday.
Now come to think of it, it is after all only a contingency planning & ideally one shouldn’t expect any money out of it unless the worst was to happen. But then each one of us is different & all of us have a different outlook.
Read more: Why is a critical illness cover more expensive than a simple life cover?
