Life insurance is a guarantee that if you die your family will be given the money from the life insurance policy. If you die, the beneficiary of your life insurance receives the death benefit, usually free from federal income tax. You choose the beneficiary, who receives the life insurance.
Not everyone has life insurance, it is more important for people in high risk environments/jobs or people that are the main source of income for their family. That way if anything happens to them, their family won't struggle financially.
The beneficiary of life insurance can use the money for any reason.
Many people buy life insurance to replace their income fr their family, in case they die.
In addition, money from life insurance is sometimes used to pay living expenses, pay off the mortgage, pay off credit card debt, maintain your lifestyle, provide for your child's education, money for your spouse's retirement, etc.
Life insurance can be an affordable way to provide financial security for your family's future in case you die and are no longer their to provide for them.
To learn about the most affordable life insurance, find out how term life insurance works.