Life insurance is a contract between an individual (the policyholder) and an insurance company, where the insurer agrees to pay a designated sum of money to the policyholder’s beneficiaries upon the policyholder’s death. In return, the policyholder pays regular premiums to maintain the coverage. Life insurance provides financial protection for the family and loved ones of the policyholder, ensuring they have financial security even after the policyholder is gone. It can be a vital part of a comprehensive financial plan, offering peace of mind and support for family goals.