What is Seguro de Vida?

"Seguro de Vida" translates to "Life Insurance" in English. It is a contract between an insurance company and an individual or entity, where the insurer promises to pay a designated beneficiary a sum of money (the "death benefit") upon the death of the insured person. In return, the policyholder pays premiums regularly. Life insurance is commonly used for financial protection of dependents, estate planning, and sometimes as an investment vehicle.