Death benefit—With a life insurance policy, if you pass away while the plan is effective, your beneficiaries can file a claim with the insurer for a lump sum payment, referred to as the death benefit. This benefit can typically be used for any purpose your beneficiaries choose.

Coverage—Life insurance typically covers all causes of death, including accidents, illnesses and natural causes. Some common uses for the death benefit may include the following:

Paying living expenses previously covered by your income

Settling credit card bills, medical expenses, mortgages or car loans

Covering funeral and final expenses

Funding children’s college tuition and other needs

Living benefits—Some policies also include living benefits, allowing you to access part of the death benefit while you’re still alive under specific circumstances outlined in the policy.

Age

Current health and medical history 

Lifestyle

Policy type

Coverage amount

Occupation