How does life insurance work?

Its a morbid product which you wished you never need to claim for, but grateful when the times comes when you need it. It is also a product which you cannot buy from (after your death/illness) when you want to buy.

Its a contract between the insurer and you, when you pay premiums, in the event that you are met with death (or illness depending on the policy wording), a payout is given to protect you/your dependents financially.

Simple. You die I pay. You fall sick I pay. Those are the 2 products in life insurance.

You pay a premium to an insurer for them to pay a sum assured benefit upon your demise or when you contract a critical illness.

This helps you continue generating the income you were supposed to generate if nothing happened to you so that life goes on for your dependants.