PERSONAL:

• Burial expenses—Life insurance will pay for funeral expenses and benefits can be assigned directly to the funeral home.
• Mortgage and debt protection—Life insurance can pay off a mortgage, credit cards, a student loan and other personal debt.
• Education—The cash value in a life insurance policy can provide funds for a college education.
• Charitable giving—Life insurance can fund a donation to, or an annuity for a charity, church, foundation or nonprofit organization.
• Estate creation—Buying a whole life insurance policy gives the insured an instant estate and makes him worth a lot more money.
• Estate taxes—Life insurance can be used to pay estate taxes when taxes are due.
• Inheritance equalization—If the son inherits the family’s $2 million mansion, what does the daughter get of equal value? How about a $2 million death benefit from a life insurance policy? This gives both children an equal inheritance.
• Survivor income—Life insurance can provide a lifetime income to a widow or widower when the spouse dies. It’s instant security.
• Children’s insurance—Life insurance on a child not only guarantees a death benefit; it also ensures that the child will be guaranteed insurable for future life insurance coverage.

BUSINESS:

• Buy/sell agreements—Life insurance can fund an agreement between two or more partners in a business that stipulates that when one of the partners dies, the death benefit goes to purchasing the deceased partner’s interest in the business.
• Credit line coverage—Life insurance can help secure a line of credit for a business by being a solid business asset that can be used as collateral for a loan.
• Key Person coverage—Life insurance will protect a business from monetary losses caused by the death of a key executive or employee.
• Employee benefit—Group life insurance is a valuable benefit a business can use to attract quality employees.
• Debt coverage—A sole proprietor of a business can use life insurance to cover his debts when he dies.