How Does Life Insurance Work?

Application Process: You apply for life insurance through an insurance company. The application may involve a medical exam and questions about your lifestyle and health.
Premium Payments: You’ll pay a monthly, quarterly, or yearly premium. In term policies, your premium is often fixed. Permanent policies might have variable premiums depending on the type.
Death Benefit: If you pass away while the policy is active, the insurer pays the death benefit to your beneficiaries (e.g., your spouse, children, or others you designate).