Life insurance, method by which large groups of individuals equalize the burden of financial loss from death by distributing funds to the beneficiaries of those who die. Life insurance is most developed in wealthy countries, where it has become a major channel of saving and investment. Upon the death of the insured, the beneficiary may choose to accept a lump-sum settlement of the face amount of the life insurance policy, receive the proceeds over a given period, leave the money with the insurer temporarily and draw interest on it, or use it to purchase an annuity that guarantees regular payments for life.

Basically, using insurance begins as you encounter any problem after you’ve purchased coverage and before or during a trip. A problem that puts your plans at risk and/or that threatens considerable cost beyond what you would normally encounter. (This won’t include coverage for essential steps on your trip that you failed to arrange for yourself, e.g., lodging, meals, fully adequate connection times between flights.)

Once you know the details of the problem (and any cost), you promptly contact the claims people for the company that issued your policy. You explain the situation, and they instruct you on what to do for a covered problem.