Dealing with death is hard enough without piling on the stress of ongoing financial commitments. Life insurance is a key financial strategy when it comes to dealing with expected or unforeseen loss. This is because life insurance protects your principal, and stops your family from having financial setbacks during the toughest times. It ensures that the loved ones of a deceased person are financially supported immediately, and can continue to meet their financial obligations moving forward. Life policies pay out a predetermined sum of cash in the event of a policyholder’s death. Once disbursed by the insurance provider, beneficiaries can use the money to address mortgage payments, education, day-to-day expenses, rent, the deceased's funeral and outstanding debts, etc.