Life Insurance is a contract between an insurance company and the owner of the life insurance policy. The insurance company agrees to pay out a death benefit on the policy when the insured person dies while the insurance is In Force. In return, the owner of the policy agrees to pay premiums on a regular basis for the life insurance coverage. The death benefit is paid to the beneficiary which is chosen by the owner of the policy. If you have anyone who relies on you for financial support you may have a need for life insurance coverage.