What is life insurance?

Life insurance is a contract binding a life insurance company to compensate a third person usually called a beneficiary for a specified amount, upon the death of a person usually referred to as an insured. If the insured dies during the contract period, the company will provide a cash payment to the beneficiary. Life insurance is used to protect the economic value of a human life with regards to those who may be financially dependent upon it. Life insurance has many uses for both individuals and businesses. Life insurance is sold by Life insurance Companies.

There are three principal corporate structures types for insurance companies in Canada; stock companies, mutual companies and fraternal societies. The following video expands on corporate structures for life insurers. ~

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