How does life insurance work

A guide to how life insurance works. The basics of buying life insurance, what to keep in mind, and how to find the right policy.
Author: Brian Greenberg CEO of True Blue Life Insurance
Last updated: July 14, 2021

What is life insurance?

Definition: Life insurance is a contract between you and an insurance company. You make premium payments, and the company pays out a death benefit. The circumstances of death must meet the stipulations of the insurance policy and a valid death certificate presented. Primary beneficiaries are the first in line to collect death benefit funds. If the primary beneficiaries are no longer alive, the funds go to contingent beneficiaries and then to your estate.