Life insurance provides a tax-free death benefit to beneficiaries, offering financial protection for dependents, debt repayment, final expenses, or income replacement. Term life insurance covers a set period and is more affordable, while permanent life insurance offers lifetime coverage with cash value but higher premiums. Coverage typically ranges from 10–12 times annual income. It's important to compare quotes, understand underwriting, and consider optional riders like accidental death benefit and waiver of premium.