Life insurance can pay funeral and burial costs, probate and other estate administration costs, debts and medical expenses not covered by health insurance. Even those with no other assets to pass on, can create an inheritance by buying a life insurance policy and naming their heirs as beneficiaries  The individual who buys the insurance is known as the policy holder. Life insurance assures lump sum amount to be paid to the family if the policyholder passes away unexpectedly. Though money cannot make up the loss, it ensures no financial hiccups to the family even after the demise of the breadwinner