How Life Insurance Works (Even If You’ve Never Bought a Policy)

Life insurance is a financial safety net that helps protect your loved ones if you pass away unexpectedly. When you purchase a policy, you agree to pay a monthly or annual premium. In exchange, the insurance company pays your designated beneficiary (like a spouse or child) a lump sum payment — known as the death benefit — if you die while the policy is active.

There are two main types of life insurance:

• Term Life Insurance – Coverage for a set period (10, 20, 30 years)
• Permanent Life Insurance – Lifetime coverage with additional savings or cash value features

You don’t need to be rich or have dependents to benefit from life insurance. It can help cover funeral costs, pay off debts, or leave a financial legacy.

Life insurance isn’t just for the elderly — it’s for anyone who wants to protect the people they care about. Whether you're starting a family, buying a home, or simply planning ahead, the right policy can give you and your loved ones peace of mind.