In personal finance, what insurance pays a beneficiary after the insured person's death?

In personal finance, insurance that pays a beneficiary after the insured person's death is life insurance.

The policyholder pays premiums to an insurer, and the policy specifies a death benefit payable to named beneficiaries when covered conditions are met. Families may use the benefit to replace income, pay debts, cover final expenses, or support dependents.

Term life insurance provides coverage for a specified period. Permanent forms, including whole life, are designed to last longer and may include a cash-value component, depending on the policy.

Life insurance is different from health insurance, which helps cover medical costs, and property insurance, which protects specified physical assets. Policy exclusions, premiums, beneficiaries, and local law affect the result.