What is life insurance?
Author : adam javi | Published On : 03 Nov 2025
What is life insurance?
Life insurance is a contract in which a policyholder pays premiums in exchange for a lump-sum death benefit that may be paid to the policyholder's beneficiaries. The lump-sum benefit is paid when the policyholder either passes away or a specific amount of time has passed. Life insurance policies can help provide financial security by replacing lost income and covering expenses.
Do I need life insurance?
Life insurance helps you plan ahead and provides long-term financial security for your family when they need it most. Life insurance can help your family with:
• Replacing lost income
• Covering outstanding debts
• Funding future education
• Providing a financial safety net
• Managing funeral costs
You can't put a dollar amount on your loved ones, but a term life insurance policy can help ensure their future is protected. Determine how much coverage you need and how long it's needed, and the GEICO Insurance Agency, LLC and its partners can provide an affordable life insurance policy that is the perfect fit for you and your family. Get a life insurance quote online and get the satisfaction of knowing your loved ones are protected.
What do I need to start a life insurance quote?
• Know the amount of outstanding debt left on things such as mortgage, loans, etc.
• Specific information regarding medical conditions
• Income level and occupation
• General medical information you may be asked about includes height, weight, blood pressure, and cholesterol levels
When should you get life insurance?
Ideally, a person should secure a life insurance policy as soon as they have financial dependents, such as a spouse, children, or even aging parents, or if they take on significant debt like a mortgage. Locking in a plan while you're young and healthy not only saves money over time, but also ensures financial protection is in place long before any unexpected life events occur.
How much does life insurance cost?
The cost of life insurance depends on several factors, such as age, medical history, and lifestyle. The coverage amount and policy type also play a significant role in determining life insurance costs. For more information about life insurance quotes, check out our answers to your life insurance questions.
How much life insurance do I need?
Determining how much life insurance you need is not as hard as you may think. By answering just a few questions and doing some simple math, you can quickly estimate your life insurance needs and see how affordable a policy can be.
What are the different types of life insurance?
There are different kinds of life insurance policies, each meeting different needs. The section below illustrates the difference between term life, whole life, and universal life insurance.
What is Term Life Insurance?
Term life insurance covers a specific time period and provides financial help to the beneficiary. Often this money is used to replace income that's lost due to the death of the insured. The benefit can help pay bills, future expenses, and even burial costs. A term life insurance policy may be eligible for a No-Med Exam, which is an option that asks a detailed questionnaire instead of requiring a medical exam.
What is Whole Life Insurance?
If the policy terms are met, then whole life insurance typically covers your lifetime and pays a benefit to the beneficiary upon the death of the insured. This policy may help with income replacement, supplemental income, and estate planning.
What is Universal Life Insurance?
Universal life insurance typically covers your lifetime. It offers an optional fund that you can contribute to above and beyond your regular life insurance. The side cash fund can build over time. Please note that universal life premiums can fluctuate.
What is the best life insurance policy for me?
As every person's situation is different, you'll need to choose a type of life insurance that is right for you. People who purchase life insurance tend to fall into these categories:
Term Life Insurance Policy:
• Main breadwinner
• Stay at home parent
• Homeowners
• Business owners
Whole or Universal Life Insurance Policy
• Those who plan to leave an inheritance
• High-net-worth individuals
• People who wish to pre-pay their funeral expenses
Need more specific information on life insurance policies? You can check out our article about life insurance for every life stage to see what may work best for you.
