Life insurance is insurance that provides your beneficiaries compensation in the event of your death. Death is a low-frequency (you can only die once) but high-severity risk. Life insurance is essentially contingent financing: where will you get money when this high-severity risk occurs. The financial or economic loss from death is significant. We have been commanded to take care of our families (1 Tim. 5:8). Life insurance can help us take care of our own and extended families financially even beyond death.

Life insurance contracts are designed to help consumers achieve a variety of individual and family goals. Life insurance marketing may be confusing, and recommendations and policy language differ between companies. It is critical for you to understand the benefits of life insurance so that you will be able to make wise choices and be a wise steward or consumer of life insurance products.