Life insurance is a contract between an individual and an insurance company in which the insurer agrees to pay a sum of money to the designated beneficiaries upon the death of the insured. The insured pays regular premiums to the insurer, and in exchange, the insurer promises to pay a death benefit to the beneficiaries when the insured dies.

Life insurance is typically used to provide financial protection to loved ones in the event of the insured’s death. This can include covering expenses such as funeral costs, outstanding debts, and living expenses for the deceased’s dependents. Life insurance policies may also offer additional benefits, such as cash value accumulation or the ability to borrow against the policy’s value.

There are different types of life insurance policies available, including term life insurance, whole life insurance, universal life insurance, and variable life insurance. The type of policy that is most appropriate will depend on individual circumstances, such as the insured’s age, health, and financial goals.