Do you want to know what happens when you purchase a life insurance policy? Generally, when you purchase a life insurance policy, you pay a premium that remains the same for the duration of the policy. If you die during the covered period, your policy will pay out a death benefit. This makes life insurance similar to other forms of insurance. Unlike other forms of insurance, however, life insurance does not earn cash value.
Instead, it pays out a payment if you die. This article will explain more about life insurance payouts and how they work.
