The Oxford English Dictionary defines life insurance simply as “Insurance that pays out a sum of money either on the death of an insured person or after a specific period of time.”

A primary reason to have life insurance is that it provides a death benefit – money that your family or other beneficiaries can use for whatever reasons they choose:

• Paying your final expenses, such as burial and estate taxes
• Family income to help maintain their standard of living
• Protect your family’s income by enabling them to pay off a mortgage, home equity loan and/or other debts
• Pay caregivers for aging or disabled relatives
• Child care
• Supplemental income for your husband, wife or partner
• Provide funds to settle your estate
• Pay expenses to keep a small business in the family

There are two types of life insurance:

• Full life insurance
• Term insurance