Life insurance is a contract that insures the life of an individual.
If that individual should die, and the policy were still in force, the specified death benefit amount would be paid to a designated beneficiary. In most cases the death benefit would be income tax free to the beneficiary. If you are a wage earner and someone depends on you, life insurance is a vehicle to protect the financial well being of that individual. During your lifetime you have certain financial goals. Life insurance is a way to achieve those goals for those you leave behind.