Life insurance is designed to provide protection and financial security to your loved ones in the event of your unexpected death. It is a contract between you and an insurance company, where you make regular premium payments in exchange for a payment, known as the death benefit, to be paid out to your beneficiaries when you die. Life insurance can help cover funeral expenses, outstanding debts, mortgage payments, and provide a source of income for your family. To best plan, you should understand the different types of life insurance policies and how they can best fit your needs.