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When a person enters into an agreement with an insurance company, they make regular payments, also known as premiums. These premiums are made in order to receive a lump sum of money upon the policyholder's death or when the policy matures. This type of agreement is commonly referred to as life insurance. It provides financial security for the policyholder's beneficiaries and can also serve as an investment for the policyholder during their lifetime. Essentially, it is a way to plan for the future and protect loved ones in the event of an unexpected death.
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