What is Life Insurance and How Does It Work?

What exactly if life insurance and how does life insurance work?

Life insurance is protection against the death of an individual person in the form of payment to a beneficiary - usually a family-member, business, or institution.

In exchange for a series of premium payments or a single premium payment, upon the death of the insured person, the face value of a life insurance policy, minus any loans or outstanding interest payments due, is paid to the beneficiary.

The proceeds from a life insurance policy naming an individual as the beneficiary is usually paid free from federal income tax.

Learn how a term life insurance policy works and find out why it's the most affordable type of life insurance plan.

NEW! Here’s How to Buy up to $500,000 of Term Life
Insurance without any Medical Exam,
Just a Few Health Questions.

What Does Life Insurance Do?

Life insurance is protection against the death of an individual in the form of a payment to a beneficiary, usually a family member.

In exchange for a series of premium payments, upon the death of an insured, the face value amount of life insurance is paid to the beneficiary.

For example, you may purchase a 10 year term life insurance policy with $100,000 of life insurance coverage naming your spouse as the beneficiary.

If you die within the 10 year time period, your spouse would receive the $100,000 life insurance proceeds from your policy.

You should review all exclusions which may prohibit payment of the life insurance policy.

Life insurance provides money to your beneficiary if you die.

many people purchase life insurance to replace their income, so the people who rely on them for financial support can go on living the same lifestyle they did while the insured person was alive.

Learn how term life insurance works, or shop and compare free, instant term life insurance quotes online from top-rated life insurers.

NEW! Here’s How to Buy up to $500,000 of Term Life
Insurance without any Medical Exam,
Just a Few Health Questions.