Life insurance is a contract between an individual (the policyholder) and an insurance company. In exchange for regular premium payments, the insurance company agrees to provide a sum of money (known as the death benefit) to the designated beneficiaries upon the death of the insured.

The primary purpose of life insurance is to provide financial protection and support to the policyholder's loved ones in the event of their passing. It acts as a safety net, ensuring that the beneficiaries receive a lump sum or regular payments, depending on the policy, which can be used to cover various expenses and maintain their standard of living. This financial support can be crucial for covering funeral costs, paying off debts, replacing lost income, funding education, or even supporting the long-term needs of dependents.

The choice of life insurance policy depends on individual circumstances, financial goals, and risk tolerance. It's important to carefully evaluate your needs and consult with an insurance professional to determine the most suitable policy for your specific situation.

It's worth noting that life insurance policies may have additional features or riders that can be added for extra protection or benefits. These can include options such as accelerated death benefits (allowing access to a portion of the death benefit in case of terminal illness), disability income riders, or long-term care riders.

Overall, life insurance provides peace of mind and financial security for loved ones by ensuring that they are protected and provided for in the event of the policyholder's passing.