Life insurance provides financial protection for your loved ones in case of your death. It helps cover expenses such as funeral costs, outstanding debts, and the loss of income. Without it, your family may struggle to maintain their lifestyle or meet financial obligations. A life insurance policy ensures peace of mind by providing a safety net, especially if you have dependents or significant financial responsibilities.

Term life insurance covers you for a specific period, such as 10 or 20 years, and is generally more affordable. Whole life insurance, on the other hand, provides lifetime coverage and includes a savings component that grows over time. While term insurance is ideal for temporary needs, whole life insurance offers lifelong protection and acts as a financial asset.

The amount of life insurance coverage depends on factors like your income, debts, dependents, and future financial needs. A general rule is to have coverage equal to 10-12 times your annual income, but individual circumstances may require more or less. Life insurance ensures that your loved ones can maintain their lifestyle, pay off debts, and cover future expenses, like education or retirement, in your absence.

If you outlive your term life insurance policy, the coverage ends, and no payout is made. However, some policies offer options to renew or convert the term policy into a permanent life insurance policy, such as whole or universal life insurance. This option ensures that you maintain coverage without undergoing another medical exam, though the premiums will likely increase.