What Does Life Insurance Provide? 
Life insurance provides money to those who would be financially disadvantaged if the insured person died . It is literally paid to the beneficiary in cash , and is usually not taxable . It provides peace of mind to insured persons while they are still alive , because they do n't have to worry about what would happen to those who are financially dependent on them , if they passed . It also provides a legacy of the deceased person in the minds and hearts of those who received the death benefit . 