Personal life insurance aims to provide a financial safety net for the policyholder's loved ones by offering a lump sum or monthly payment upon the policyholder's death. This benefit can help cover expenses such as mortgage or rent payments, daily living costs, education expenses, and other financial obligations.

There are different types of personal life insurance policies, including term life insurance and whole life insurance. Term life insurance provides coverage for a specific term, while whole life insurance provides coverage for the entire lifetime of the insured person.

Policyholders pay regular premiums to the insurance company in exchange for the coverage provided by the policy. Premiums can be paid on a monthly, quarterly, or annual basis, depending on the policy terms and the individual's preferences.

The policyholder designates one or more beneficiaries who will receive the death benefit in the event of their passing. Beneficiaries are typically family members, such as spouses, children, or other dependents, but they can be any person or organisation chosen by the policyholder.

Personal life insurance policies often require the applicant to undergo a medical underwriting process, which may include disclosing medical history, undergoing a medical examination, or providing relevant health information. The premiums may vary based on the individual's health status and other risk factors.