Life Insurance: 101

The primary purpose of life insurance is to provide a death benefit.  It provides security and financial protection and is an important tool in creating, preserving, and transferring wealth.  Life insurance is often used in estate, business, charitable planning, and for tax advantages not available with other financial vehicles.

Some of the reasons to consider buying a life insurance policy include:

*     Supporting your dependents after your death
*     Providing cash so your beneficiaries can pay the estate taxes and other costs that may arise
       upon your death
*     Making sure all of your heirs are treated fairly upon your death
*     Funding a college education for children or grandchildren
*     Avoiding having your business or a piece of property sold at "fire sale" prices upon your death
*     Financing the purchase of business interests
*     Funding a charitable gift, or replacing the value of a gifted asset to your family
*     Securing a loan or line of credit
*     Leveraging your estate and generation skipping exemptions

Part 3: Basic types of life insurance policies...