Life insurance is an invaluable financial tool that can provide peace of mind during life while helping loved ones cope with its financial repercussions upon your death. Life insurance provides an economical means of assuring those dependent upon you have funds available for loan repayment, childcare costs, education expenses and funeral costs in case of your demise.

Insurance policies are agreements between you and an insurance company in which they agree to pay your beneficiaries a death benefit upon your passing in exchange for regular premium payments; depending on which policy type is chosen, some can even build up cash value that can be withdrawn or borrowed against during life.

Life insurance policies can only be sold by select companies licensed by state insurance departments, and each must go through an underwriting process which examines your medical history and other data in order to decide if they accept you as policyholders. You can purchase policies either directly from them or from agents/brokers representing multiple policies.

everyday life insurance have laws that mandate insurers issue policies if you pass a medical exam and fulfill other criteria for eligibility. If they decline, however, you can appeal their decision.

Life insurance policies offer many reasons to purchase coverage, with one of the primary ones being to replace lost income should something happen to you and provide your family with what they need – like housing, education or investments – should your income stop after death. Furthermore, using death benefits could also pay for final expenses and create a lasting legacy.

As part of your estate planning, life insurance allows you to select one or multiple beneficiaries as beneficiaries of your policy. Beneficiary selection should be reviewed regularly as your circumstances evolve, for optimal results.

Cancelling life insurance policies is usually possible if your circumstances change or premiums become too much to afford, but most companies have a two-year contestable period during which they review any information provided on an application form and determine if any false statements were given that would result in their not paying claims or even denying them altogether.