Life Insurance

Understanding Life Insurance

Life insurance pays your beneficiaries a monetary benefit upon your death. The money can pay for burial expenses, bills, or anything else the beneficiary thinks is best.

Most People Need Coverage

Unless a person is wealthy, they likely need life insurance. Without a life insurance policy, your family is responsible for all the expenses upon your death. If they can’t pay the expenses, then they can face financial hardships. But it’s also possible to leave the money to a charity or some other organization.

Buying a Policy

In most cases, you must qualify for a life insurance policy. Insurers prefer people in good health. If you have certain conditions, then an insurer might refuse to cover you. It’s also easier the younger you are. Your health and age will also affect your premiums.

When the insurer agrees to cover you, you purchase the amount of coverage you want. For example, you might purchase a $20,000 policy. That means your beneficiaries will receive that amount upon your death.

Types of Policies

Terms insurance covers you for a specific amount of time. For instance, you can buy a 15-year policy. If you die before 15 years have passed, then your beneficiaries get the benefit. But if you die after the insurance has expired, then you’re not covered. It’s important to renew if you outlive your term life policy.

Some other policies offer permanent coverage. That means no matter how long you live, the insurance policy remains active. As long as you pay your premiums, then you’ll have coverage. Some policies also allow you to borrow from the policy or build savings.


The benefit of life insurance is that it provides for your family when you’re gone. Your children might need educational funds. Your spouse might face a huge mortgage bill. When you’re gone, they can use the funds to maintain their financial stability. And also, if your family is unable to pay bills or your final expenses, the insurance can help with that too.