Everybody knows you need to get life insurance, because of the financial security it provides in unforeseen circumstances. Except signing up for an insurance policy can be daunting, because it’s a long-term commitment that requires careful thought and research. If you’ve decided to invest in a life insurance policy, you’ll need to first understand what exactly such a plan entails. What is life insurance? We last discussed what defines an insurance policy here. But what about life insurance? A life insurance policy is a contract between yourself and an insurance company, or your insurer. In exchange for coverage on your life and benefits such as a lump-sum payout in case of your demise, you’ll pay premiums over an agreed period of time. Life insurance plans are often customisable, and in many cases tailored to your financial goals, spending habits and income. Here’s an overview of the key differences between term life and whole life insurance plans....