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Life Insurance

Life Insurance – Personal & Family Needs

Here are some of the benefits a properly structured life insurance program can provide for you and your family:

Income Replacement

Is there a spouse, child, partner, or other whose financial lifestyle would be negatively impacted by the death of the individual? How will these income needs be met? Life insurance provides immediate cash to assist in meeting the income needs at the death of the insured. The amount of life insurance death benefit needed depends on the income to be replaced and on the number of years the income is needed.

Final Expenses

Often when an individual dies, they leave expenses that need to be paid. These include medical expenses, funeral expenses, personal debts, etc. Life insurance proceeds provide the cash to pay these expenses.

Estate Taxes

The estate tax is due nine months after the individual dies (subject to extensions). Often liquid assets are not available to meet the estate tax obligation, especially if a business and real estate are part of the estate. Assets may need to be sold at low values to meet the tax liability. Life insurance provides cash to pay this tax without having to sell productive assets owned by the estate.

Estate Equalization

Most parents desire to leave an equal inheritance to each of their children. This can be difficult if a family business (or similar assets) is in the estate. The business is often difficult to divide among the children. Life insurance can provide cash to equalize, or right size, each child’s inheritance. The amount of life insurance to meet this need should be based on who should get what from the estate and what assets are available.

Retirement Income

How will income needs be met in retirement? The proper type and structure of life insurance policy can provide tax-free income for the individual or family, similar to a personal pension plan. In this situation, the amount of life insurance death benefit is minimized, and the premium payment/investment is maximized to generate the optimum annual income from the policy.


Life insurance proceeds provide an immediate estate. The funds can be used to provide an inheritance to heirs you want to benefit. Other assets owned by the individual may not provide an adequate inheritance to family members.

Philanthropic Desires

Is there a cause or entity you want to support? Life insurance proceeds can provide funds to support the cause or entity after you die. This is done by naming a philanthropic entity as the beneficiary of the life insurance death benefit proceeds. These proceeds can provide an endowment or fund a specific project at the charitable entity.


Individuals are often concerned about how their loved ones will meet financial needs without them. Life insurance can provide peace of mind by knowing that money will be available to assist in meeting the financial needs of individuals, families, or entities you care about and that are dependent upon you for support.

Personal Bank

How will you pay for your next car, the education of your children, a wedding and other needs and wants? The cash value in a properly structured life insurance policy can provide funds to meet these needs. The investment in the life insurance policy grows income tax free and, in most situations, can be taken from the policy income tax free. Help from a competent professional should be obtained to establish such a policy and access the funds from such a policy.

Terminally, Chronically or Critically Ill

The death benefit of a life insurance policy can, in certain circumstances, be accessed prior to the death of the insured to provide funds to meet medical and living expenses when these situations exist. Individuals with these health conditions face numerous challenges. Life insurance proceeds can provide the financial resources to address some of these challenges.