Life insurance is a contract between an individual and an insurance company. In exchange for regular premium payments, the insurance company provides a lump-sum payment, known as a death benefit, to the designated beneficiaries upon the insured individual's death. This financial protection helps ensure that loved ones are provided for in the event of the policyholder's passing.

Life insurance works by providing financial protection to the insured individual's beneficiaries in the event of their death. The policyholder selects a coverage amount and pays premiums to the insurance company. If the insured individual passes away while the policy is in effect, the insurance company pays out the death benefit to the designated beneficiaries. The beneficiaries can use this money to cover funeral expenses, pay off debts, replace lost income, or meet other financial needs.

To buy a life insurance policy, you can start by determining your coverage needs and budget. Then, you can research different types of policies, such as term life, whole life, or universal life, to find one that meets your needs. Once you've chosen a policy, you'll need to complete an application and undergo a medical exam. The insurance company will review your application and medical history to determine your premium rate. If approved, you'll sign the policy and begin paying premiums to keep the policy in force.