• A policy that will pay a specified sum to beneficiaries upon the death of the insured.
• Can be used as a means of investment or savings.
• Historically received favorable tax treatment and has grown into a sophisticated and multi-faceted industry concerned as much with the mitigation of tax and the provision of savings as the pure protection product it was originally designed to be.

Three parties in a life insurance transaction:

• The insurer
• The insured
• And the owner of the policy

The beneficiary; the person or persons who will receive the policy proceeds upon the death of the insured

The face amount; the amount paid when policy matures.

The most common reason is to protect the owner of the policy in the event to the insured’s demise paying for funeral, other death costs and protection by replacing the deceased’s wages.

The owner of the policy must have a legitimate insurable reason.