What is Life Insurance?

Life insurance can be a financial resource for your loved ones in the event of your death. You enter into a contract with an insurance company, which promises to provide your beneficiary(ies) a certain amount of money (commonly called a "Death Benefit") upon your death. In return, you make periodic payments, known as premiums. The amount of the premiums generally depends on factors such as age, gender, occupation, medical history and whether you intend to build up cash value in your policy. Some life insurance policies require a medical exam.