Life insurance is a financial product that provides a payout to the beneficiaries or the policyholder's family in the event of the policyholder's death. It is a contract between the policyholder and an insurance company, where the policyholder pays regular premiums to the insurer. In return, the insurer guarantees a lump-sum payment, known as the death benefit, to the designated beneficiaries upon the policyholder's death.

The primary purpose of life insurance is to provide financial protection and support to the policyholder's loved ones after their passing. The beneficiaries can use the death benefit to cover various expenses, such as funeral costs, outstanding debts, mortgage payments, education expenses, and everyday living costs.

Life insurance serves as a crucial tool for ensuring the financial security and well-being of one's family and dependents in the event of an unexpected loss of the policyholder. It provides peace of mind and can help safeguard the financial future of loved ones.