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Uses of life insurance?
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- Funeral - Life insurance proceeds can ensure that there
is enough money for proper funeral and burial expenses.
- Debt - Personal bills, credit card debt, student loans,
and personal notes can be covered by life insurance in the event of
an individual's death.
- Mortgage Protection - The proceeds of a life insurance
policy can pay off the balance of a mortgage or provide an income
stream to pay monthly mortgage or rent payments.
- Income Replacement - In the event of an individual's
death, life insurance proceeds can provide a supplemental income
stream to ensure that the surviving family members are able to
maintain the same standard of living.
- Education - Life insurance proceeds can ensure that the
education costs of the insured's children are covered.
- Taxes - Federal estate and state inheritance taxes can be
pre-funded using life insurance to preserve the value of an estate.
- Donations/Gifts - An individual can use a life insurance
policy to fund a donation to a charity or leave a gift to a family
member.
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