Life insurance is a type of insurance contract that provides financial protection to beneficiaries in the event of the policyholder's death. The policyholder pays premiums to the insurance company, and in return, the insurer promises to pay a lump sum, known as the death benefit, to the designated beneficiaries upon the insured person's death.

There are different types of life insurance policies, including term life insurance, whole life insurance, universal life insurance, and variable life insurance. Each type has its own features and benefits.

• Term life insurance provides coverage for a specific period, such as 10, 20, or 30 years. It offers a death benefit but does not accumulate cash value.
• Whole life insurance provides coverage for the entire lifetime of the insured person. It has a fixed premium and accumulates cash value over time, which can be accessed by the policyholder.
• Universal life insurance offers more flexibility in premiums and death benefits than whole life insurance. It also accumulates cash value and allows the policyholder to adjust the death benefit and premium payments.
• Variable life insurance allows the policyholder to invest the cash value portion of the policy in various investment options, such as stocks or bonds. The death benefit and cash value may vary based on the performance of the investments.

Life insurance can serve multiple purposes, including replacing lost income, paying off debts and final expenses, funding education or retirement for dependents, and providing an inheritance for beneficiaries.

When considering life insurance, it's essential to assess your financial needs and goals, as well as factors such as age, health, income, and existing financial obligations. Consulting with a financial advisor or insurance agent can help you determine the most suitable type and amount of coverage for your situation.