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Life insurance

Life insurance is a type of insurance that pays you to die, more or less. If you have a life insurance policy, and you die, your beneficiary will receive payment of the agreed-upon amount.

Expanded Definition

An insurance policy is a contract under which the issuing insurance company agrees to pay benefits under specified conditions, i.e., the death of the insured, in return for the payment of premiums. The industry is regulated at the state level usually by state insurance boards. State insurance boards require that insurance companies meet certain minimum standards to sell insurance in their state.

Some life insurance policies make it possible to borrow money against the policy.

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