Is it important, something you definitely need or is just some profit for the insurance company like the banks?
Do I place my life into the hands of banks if I apply for life insurance?
What do I gain by applying for it?
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It's a tool you can wield, it's also a way to scam people who are financially unsophisticated... so good on you for asking.
Things to know:
There are legitimate financial companies with large brands who make money through arbitraging markets at scale.
There are MLM companies that over inflate payments on sketchy products to earn commission down to the "agent" level.
There is "Term" Life insurance which defines a period in which you are covered, 20 years is common.
There are "Whole Life" policies which put the payments into a fund you can get back if you survive long enough.
There are Accidental Death and Dismemberment (AD+D) policies that only cover accidents etc, these are much less expensive.
When DOES it make sense?
You have a wife, kids, and a mortgage and without your income they're in trouble.
You don't want to leave a bill for whoever has to bury you.
When does it NOT make sense?
If you have no dependents and/or have enough assets that everything is already covered, or you just really don't like whoever will have to clean up your mess.
Whole vs. Term
Since everyone is going to die, how do insurance companies make anything on whole life? Exactly. Whole life is a scam... it works by suckering people into higher payments with the notion they can get that money back if they want it. What's being robbed here is the time-value of that money.
Term is meant to be used as a tool, which insurance is, where you define the period in which you can't self insure. By having a lower payment, you've freed cash to accumulate other assets.