An important ingredient in any solid financial plan is securing a life insurance policy. In the event of death these policies provide valuable benefits that can allow beneficiaries to replace the income of the deceased in order to pay off debt and other expenses.
Life insurance policies fall into two categories, term and permanent.
Term insurance provides coverage for defined number of years in exchanged for a specified premium, whereas permanent life insurance remains in-line until the policy pays out.
One criticism of life insurance policies is that they can and have been used in cases of fraud and exploitation. Quite often exclusions can be written into the policy that will limit the liability of the insurer.