Life insurance policies are contracts between an individual and an insurance company. The individual pays regular premiums, and in return, the insurance company provides a payout, known as a death benefit, to designated beneficiaries upon the individual's death. This financial support can help cover expenses like funeral costs, debts, and living expenses for loved ones. There are different types of life insurance policies, including term life insurance and whole life insurance. Term life insurance offers coverage for a specific period, while whole life insurance provides lifelong coverage and can accumulate cash value over time. Choosing the right policy depends on personal needs and financial goals.