Uses of Insurance

When looking into life insurance make sure you look at your uses and needs of life insurance.

Here are some common uses of life insurance:

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.

Related Article: Determining your needs >>