A person dying unexpectedly or becoming terminally ill can put a severe financial strain on the family. Depending on the type of life insurance policy covered, the death benefits will cover many financial expenses for your loved ones. Life insurance benefits may cover funeral expenses, mortgage payments, educational costs, credit card debt, medical debts, and everyday expenses. Depending on the goals you want for your beneficiaries, some life insurance policies allow you to leave an inheritance to your children or grandchildren.