Life insurance is essential for ensuring the financial well-being of your dependents and loved ones after your death. It can cover funeral expenses, pay off debts, replace lost income, and secure your family's future.

There are two primary types of life insurance: term life insurance and permanent life insurance. Term life insurance provides coverage for a specified term, while permanent life insurance offers lifelong coverage and can also build cash value.

The amount of life insurance you need depends on your individual circumstances, including your financial obligations, such as mortgages, loans, and the future needs of your dependents. An insurance agent can help you determine an appropriate coverage amount.

Life insurance premiums are based on various factors, including your age, health, lifestyle, the type and amount of coverage, and the length of the policy. Younger and healthier individuals generally pay lower premiums.

In most cases, the death benefit received by beneficiaries is not subject to federal income tax. However, there may be exceptions for very large estates. The cash value growth in permanent life insurance policies can have tax implications, so it's important to consult with a tax advisor for specific guidance.