Life insurance can potentially cover various financial losses and responsibilities your loved ones might have after you pass away. Benefits will depend on your policy and the amount of coverage. Life insurance can include help with: Income replacement of the person who passed away; Paying for funeral costs; Paying off a mortgage; Paying off car loans, student debt, and other loans; and providing college funds for your children. Having adequate life insurance coverage in place can also help with other financial obligations such as caring for aging parents or looking after family members with special needs.