---
title: "What Is Life Insurance? Definition | Epic Life Glossary"
description: "Life insurance is a contract in which an insurer agrees to pay a death benefit to named beneficiaries when the insured person dies, in exchange for..."
url: https://epicline.preview.multisites.ai/glossary/life-insurance
publisher: Epic Life Group
apply: https://epicline.preview.multisites.ai/apply
quote: https://epicline.preview.multisites.ai/get-a-quote
---

Policy types and products

# Life Insurance

Life insurance is a contract in which an insurer agrees to pay a death benefit to named beneficiaries when the insured person dies, in exchange for premium payments. Policy types, prices, and features vary by carrier and state.

## Why it matters

Life insurance gives a family money at the moment income stops. Beneficiaries can use it for funeral bills, a mortgage, daily costs, or debts. The two broad groups are term, which lasts a set period, and permanent, which can last for life. For example, a parent may buy term coverage to protect children until they are grown. Agents compare carriers to match the product to the need, budget, and health of the buyer. Death benefits are generally paid income tax free, though exceptions exist.

Source: [iii.org](https://www.iii.org/article/life-insurance-basics)

## Where we use this term

-   [Building an insurance agency: how overrides and downlines work, and what is legal](https://epicline.preview.multisites.ai/guides/building-an-insurance-agency-overrides-downlines)
-   [Burial insurance vs life insurance vs pre-need funeral plans: what is the difference?](https://epicline.preview.multisites.ai/guides/burial-insurance-vs-life-insurance-vs-preneed)
-   [Captive vs independent insurance agent: who owns your book?](https://epicline.preview.multisites.ai/guides/captive-vs-independent-agent)
-   [How much does final expense insurance cost, and what sets the price?](https://epicline.preview.multisites.ai/guides/final-expense-insurance-cost)
-   [Your first 90 days as a telesales life insurance agent: a week-by-week ramp](https://epicline.preview.multisites.ai/guides/first-90-days-as-a-telesales-agent)

## Start your climb.

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