Suppose you have children, a spouse, or other dependents. In that case, a life insurance policy can certainly provide financial comfort for your loved ones. In exchange for premium payments, the insurance company will provide a death benefit to your designated beneficiaries after your death.
You also can purchase a policy that builds cash value that you can access by borrowing as a loan or through withdrawals. This is considered as a living benefit.
There are multiple types of life insurance:
Term life policies last from five to thirty years and are a good option for those who need affordable coverage or to help with short-term needs. With term life, you also can change it into a permanent policy in the future.
Whole life insurance is a permanent policy that offers two primary benefits: a guaranteed death benefit and a cash value. Because a whole life policy lasts for your whole life, it is typically best for those who want to accumulate a cash value over several years while still having a death benefit available to their beneficiaries if the worst was to happen.