Life insurance is a contractual agreement between you and an insurance company. You, as the policyholder, pay scheduled premiums, and in return your designated beneficiary is guaranteed to receive a lump sum of money, or death benefit, upon your death. A life insurance policy can provide financial security for your loved ones in case you are not alive to provide for their ongoing needs. Buying a life insurance policy can help give you greater peace of mind that your family could have financial protection when you are gone.