Life insurance provides a tax-free lump sum of money, called the death benefit, to a designated beneficiary after your death. You choose the type of policy you need, number of years you want it to last, and coverage amount, and make premium payments to the insurance company. If you die while your life insurance policy is active, your beneficiaries can file a claim and the death benefit will be paid out to them.
Life insurance coverage offers affordable financial protection — and invaluable peace of mind — to people whose friends or family members rely on them. The death benefit can be used to pay expenses like a mortgage, utility and grocery bills, children’s college costs, final funeral arrangements, long-term care, and more.