Life insurance is a contract between the insurer and the policyholder, wherein the policyholder pays a premium and in exchange the insurer promises to provide financial help to the beneficiary/ policyholder's family, in the event of unfortunate death of the policy holder. Life insurance is mainly divided into two main categories: Whole Life Insurance and Term Insurance. While whole life insurance offers cover for a longer tenure and provides maturity benefit, term insurance offers cover for a limited period and not all policies offer maturity benefits.