Health care CostsThere are 6 main reasons to buy life insurance with reference to estate planning.

For the Death Benefit

  • To replace earning power at death
  • To pay for cash needs that arise at death

As a Disciplined Saving Program

  • To help pay for educational costs
  • To supplement retirement income
  • To take advantage of business opportunities
  • For financial emergencies

Because of the Risk of Waiting

  • Insurability may be impaired or lost
  • Premiums are lower now than they will be at a higher age
  • To begin building cash values that may be used in the future for collateral

Recognition of Personal Responsibility

  • To family
  • To a banker
  • To a mortgage company

For the Tax Advantages

  • Death proceeds are received free of income tax
  • Cash value accumulations are tax deferred
  • Cash value loans or withdrawls are free of tax, as long as the policy stays in force
  • Accelerated death benefits are received free of income tax

For the Flexibility

  • Benefits may be available regardless of whether the policy owner lives, dies or becomes disabled
  • Life insurance is portable, benefits are not lost due to job changes