There are two main types of life insurance: term life insurance and whole life insurance.
Term life insurance covers you for a specific period of time, usually 10, 15, 20, or 30 years. If you die during that time, your beneficiaries will receive a death benefit. If you live past the term, the policy expires and you (and your beneficiaries) get nothing.
Whole life insurance, on the other hand, covers you for your entire life. As long as you pay your premiums, the death benefit will be paid to your beneficiaries when you die. Whole life insurance also has a cash value component, which grows over time and can be borrowed against or withdrawn.
So, life cover meaning can be defined as: coverage for a set period of time or for life in whole, that pays out a death benefit to beneficiaries in the event of the policyholder’s death.
There are many different types of life insurance policies available, so it’s important to choose the one that’s right for you and your family. You can speak to a life insurance agent or financial advisor to get started.