by 
The Curious Bag
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A life insurance policy pays the beneficiaries listed in the plan a set amount of money upon the death of the insured. These policies are important for ensuring that families can still live comfortably after the death of a loved one.
Important Fact
According to Mutual of Omaha, 44 percent of Americans believe they need more life insurance than they have, with 40 percent of people who hold life insurance policies wanting to add coverage.
Considerations
Twenty-five percent of U.S. heads of household do not know how their families would survive if they suddenly became incapacitated or died, according to Mutual of Omaha.
Types
Term life insurance policies are commonly received through an employer, but they usually cover only an entire year and do not gain value. Cash-value policies typically last however long the person wants, and they build up value over time.
Misconceptions
Seventy-five percent of those who think life insurance would add too much financial responsibility are younger--meaning they could get lower premiums because they are unlikely to die soon.
Tips
Major life changes, such as having a baby or getting married, are the most important times to consider purchasing or upgrading a life insurance policy, because of the new obligations.
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