What’s the point of life insurance?

The point of life insurance is to provide financial protection for your loved ones in the event of your unexpected death. A life insurance policy pays out a sum of money, called a death benefit, to your designated beneficiaries when you pass away. This money can be used to cover various expenses, such as:

• Final expenses: Funeral and burial costs can be quite expensive, and a life insurance policy can help cover these costs without putting a financial burden on your loved ones.
• Debts and expenses: Life insurance can help pay off any debts or financial obligations that you leave behind, such as a mortgage, car loans, or credit card balances.
• Living expenses: If you have dependents who rely on your income, a life insurance policy can provide them with the means to cover their daily living expenses after you're gone.
• College tuition: If you have children who plan to attend college, a life insurance policy can help cover the costs of their education.
• Estate planning: Life insurance can be used as a tool for estate planning, allowing you to leave a legacy for your loved ones or to make charitable contributions.

In general, the point of life insurance is to provide peace of mind for both you and your loved ones. By knowing that your family will be taken care of financially after you're gone, you can focus on enjoying your life and building your legacy. It's important to note that there are different types of life insurance policies, each with their own features and benefits, so it's important to carefully consider your options and choose the policy that best meets your needs.