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
- 10 Immediate Steps to Start Planning for Retirement in Your 40s
- What Is Gross Pay, and How Is It Different From Your Salary or Net Pay?
- What is an Escrow Account?
- This Medicare Mistake Could Cost You For the Rest of Your Life
- The Smart Way to Double Your Money in Retirement
- Healthcare Investment Opportunities for the Long Term