Are you wondering what is life Insurance used for and why you may need life insurance? If so, it’s a common question many people ask themselves when considering the purchase of life insurance coverage. First, it’s important to understand what life insurance is. Life insurance is a contract between the insured person and the insurance company. The insured agrees to pay premiums on a regular basis in exchange for a certain amount of life insurance. And, if the insured person dies while insured by the policy, the insurance company pays out a death benefit to the beneficiary chosen by the insured. So, you pay premiums to the insurer, and if you die, the insurer pays out a life insurance death benefit to your family (beneficiary).