Question About Life Insurance

With the internet, we can do research on topics in which we are not so familiar about. I’m intrigued with the subject of life insurance. So this is an agreement between the insurance company and a certain individual, the policy owner, who pays a certain amount regularly to the company so that the latter will pay a lump sum to a person of the policy owner’s choice (the beneficiary) when the policy owner dies.

The three types of life insurance are: term life insurance, whole life insurance, and universal life insurance. In term life insurance, a fixed amount is paid on a fixed schedule, providing coverage for a fixed period (say 10, or 20, years). Another question that intrigues me is: how much is term life insurance?

Another question could be: What are the purposes of life insurance? I’ve learned that the most common is to protect the finances of one’s family, or his own circle of loved ones, in case of the insured’s (or the wage-earner’s) death, but there are other uses. Among others, it can be for estate, or for mortgage, protection, or to fund a retirement, or as an employment benefit.