Some policies may be for as little as $1,000; while others may be for up to $1,000,000 of coverage, or more.
If there is one person named as the beneficiary on the life insurance policy, then the full amount all goes to that individual.
Life insurance proceeds are tax-free, usually they are paid out free from any federal income tax.
It is important to make a claim for the life insurance proceeds when the insured person dies, as the payment isn't automatic - you have to request payment as a beneficiary to the life insurance policy.
Sometimes, for certain kinds of life insurance policies the insured person can borrow money against the "cash value" of the life insurance policy while they are still alive.