Life insurance, sometimes referred to as life assurance, provides for a payment of a sum of money upon the death of the insured. In addition, life insurance can be used as a means of investment or saving.

Life insurance is a financial resource for your loved ones in the event of your death. You enter into a contract with an insurance company that promises to provide your beneficiaries a certain amount of money upon your death. In return, you make periodic payments, known as premiums. The size of the premiums is generally based on factors such as your age, gender, medical history and the dollar amount of life insurance you select. Some policies may require a medical exam before premiums are established.

Certain types of life insurance may also provide benefits for you and your family while you're still living. Policies such as whole life or universal life accumulate cash value on a tax-deferred basis, and that value can be used to supplement your retirement income or help provide for a child's education. Life insurance is an important part of anyone's financial portfolio. Financial advisors often recommend developing a financial plan that includes an appropriate amount of life insurance as part of a comprehensive strategy for financial security.