Life insurance planning refers to the process of assessing an individual’s or family’s financial needs and using life insurance policies to mitigate potential risks and provide financial security.

Life insurance policies typically pay out a death benefit to designated beneficiaries in the event of the policyholder’s death and can be used to cover expenses such as funeral costs, outstanding debts, and ongoing living budgets for dependents.

Life insurance planning can involve evaluating different types of policies, such as term life insurance or permanent life insurance, and determining the appropriate coverage amounts and beneficiary designations.

Factors that may be considered in life insurance planning can include the policyholder’s age, health status, income, and family situation. Life insurance planning can be an important component of overall financial planning and may require the assistance of a financial advisor or insurance professional.