life

Death Benefit vs. Life Insurance: Understanding the Differences and Benefits

When planning for the financial security of loved ones after one’s passing, understanding the difference between a death benefit and life insurance is crucial. A death benefit is a sum of money paid to beneficiaries upon the policyholder’s death, while life insurance provides financial protection for beneficiaries in case of the policyholder’s untimely demise during the policy term. Consider a scenario where a breadwinner passes away unexpectedly. Life insurance would offer a financial cushion for the family to cover expenses like mortgage payments, education costs, and outstanding debts, ensuring stability during a difficult time.

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