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.
Related Fool Article
Recent Mentions on Fool.com
- Annuities: Can They Really Save Baby Boomers' Retirement Dreams?
- The 11 Largest IPOs of All Time
- 3 Value Stocks Senior Citizens Could Buy Right Now
- 7 Valuable Insights from America's Best Big Bank
- One Lender Growing Faster Than Bank of America -- and Why That's a Bad Thing
- Warren Buffett Doesn't Know What He's Missing with This Stock