Benefits of Life Insurance

Life insurance is intended to benefit your dependents, loved ones or whomever else you name as your beneficiary when you die. There are many types of life insurance, with varying benefits, but the main benefit of a life insurance policy is that it will pay the face amount — the amount of the policy — to the beneficiary if you pass away while the policy is in force. This money often is used to cover your final expenses.

People often purchase larger life insurance policies for any number of reasons, the most common being to ensure that their debts are paid off, to provide continuing income to dependents or to cover the cost of children’s education. Some life insurance policies also accumulate cash value, which may be borrowed against or which may be collected if the policy is cashed out and canceled.