by 
The Curious Bag
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Life insurance is a financial tool used to protect income. When a wage earner dies, his income is lost unless there is a life insurance policy to replace it. Life insurance can either pay out in one lump sum of over time, based on the insured preferences.
Options
Life insurance offers security. The benefits can be set up to distribute monthly, similarly to receiving a regular income, as a lump sum so that outstanding debts can be paid off or set aside as an emergency fund against future situations.
Considerations
How much life insurance someone needs is based on a number of criteria. Lost wages need to be replaced, additional expenses such as babysitter costs or rental expenses need to be covered and final expenses need to be paid.
Expenses
Benefits can also be used to pay for future educational expenses of the deceased's children.
Purchasing
Purchasing life insurance can be complex and distressing. Working with an insurance professional can help you navigate through the options.
Tip
Purchase as much insurance as you can afford. Whenever possible, increase your life insurance policy to ensure that you are prepared for the future.
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