The basics of life insurance at its core is pretty self-explanatory. Should the person who is insured with life insurance pass away, the insurance company will pay out the agreed upon amount to the insured’s beneficiaries. Life Insurance, however, can get very complicated, because of the different kinds of life insurance and the variation of benefits and features. Bottom line is this: unless someone has significant assets, most people need life insurance to protect their family should they or their partner pass away prematurely. Term insurance is typically the best choice for this need because it is much less expensive than permanent life insurance.