What is "personal life insurance"?

Personal life insurance refers to policies that individuals purchase to secure financial protection for themselves and their beneficiaries. This type of insurance is designed to cater to individual needs and circumstances, allowing policyholders to choose coverage amounts, terms, and specific beneficiaries. The primary purpose of personal life insurance is to provide a financial safety net that ensures loved ones are financially supported in the event of the policyholder's death.

This concept contrasts with group insurance, which is typically provided by employers to a collective group of individuals and lacks the tailored benefits that personal policies can offer. Additionally, while specialized coverage exists for individuals deemed high-risk, that doesn't define the broader category of personal life insurance, which applies to a wide range of consumers. Lastly, credit insurance relates specifically to securing loan obligations and is not representative of personal life insurance's intent or scope. Therefore, the definition that best captures personal life insurance is that it is a policy taken out by individuals for their own personal financial protection.