Life Insurance
Definition
Insurance paying a death benefit to your beneficiaries if you die. Term life (20-30 years, cheap) versus whole life (lifetime, expensive, includes cash value). Most people need term. If you're dependent-free, you might not need any.
Why It Matters
If people depend on your income, life insurance is critical and cheap. Term life for $1M costs $30-50 per month for healthy 30-year-old. If you die, family doesn't lose the house. If you're single with no dependents, skip it.
Example
Have two kids and a $500k mortgage. Get $1M term life policy at $40 per month. If you die, family gets $1M tax-free, pays off mortgage, and has money to live on. If you live to 60, insurance was cheap and you protected your family.