Death insurance is more commonly referred to as life insurance. It is insurance that provides a cash benefit to survivors upon the death of the insured person. Choosing life insurance can be confusing, as there are many different types and features available. Death insurance can be used for whatever purposes the beneficiary sees fit.
Significance
Surviving spouses and children of adults who die without any kind of life insurance can be hit hard by both the costs of final expenses and the loss of income. According to JD Powers and Associates, studies indicate that fully 40 percent of the adult population of the U.S. has absolutely no life insurance. Of those who are insured, it is estimated that more than 50 million have policies that are inadequate, and which force the surviving spouse to make drastic lifestyle changes to stay current with the family's financial obligations. This can force the family to change residences, sell possessions or switch jobs.
