What is life insurance and how does it work? A beginner’s guide

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November 2, 2026 / 11:56 AM EST / CBS News

Life insurance can provide a financial payout for your loved ones in the event of your death. It's often a smart financial move for parents, partners, primary income earners, homeowners and others who have dependents relying on them — or their salaries — to get by.

Still, life insurance isn't right for everyone — or every budget. So it's important to take an informed approach before securing a policy. Below, we'll detail what to know about life insurance, how it works and what it could cost you if you buy a policy.

Find out more about your life insurance policy options here.

Life insurance is a type of insurance policy that provides a payment to your family members, relatives or other people after you have died. You name a beneficiary (or beneficiaries) on the policy, pay your premiums, and if you die during the covered period of time, the beneficiary makes a claim on the policy and receives money (called the death benefit) based on the coverage amount on the…

Original source: https://www.cbsnews.com/moneywatch/