Hi, I'm Tony Steuer, The Life Insurance Sage, and this is my tip on how to define life insurance. Life insurance is a financial contract wherein you pay premiums to an insurance company and they pay a cash benefit to your beneficiaries when you pass away. Life insurance is used to provide for the expenses needed by that survivor. It pays for clothing, it pays for mortgages, it pays for rent, car expenses, childcare expenses, groceries and for setting aside money for college expenses. Life insurance is a financial leverage tool that allows you to pay premiums of a small amount to receive a large benefit in the instance that it is needed. Life insurance has been around for well over 100 years and is one of the most commonly used financial tools. I'm Tony Steuer. That was my tip on how to define life insurance. Thank you for watching.