It depends on the type of insurance. A life insurance policy provides loved ones (beneficiaries) with a cash payout, called a death benefit, if the insured person dies while the policy is still active. Certain types of life insurance can also build cash value that you can use during your lifetime. Long-term care insurance can reimburse you for the costs of long-term care to help with everyday activities, such as getting out of bed or bathing, and help protect your nest egg in the process. Individual disability insurance helps to replace some lost income if sickness or injury leaves you unable to work.