Insurance on your residence will pay toward repairing or replacing your home in case of damage from a covered peril. The contents of your house will also be covered in case of damage or theft. However, some perils may not be covered. For example, flood damage may not be covered if your house is in a floodplain.
At some point, you will probably consider the purchase of life insurance to provide your family with additional economic security should you die unexpectedly. Generally, life insurance provides for a fixed benefit at death. However, the benefit may vary over time. In addition, the length of the premium payment period and the period during which a death is eligible for a benefit may each vary. Many combinations and variations exist.