The Many Uses of Life Insurance
Most people generally know about life insurance and its most familiar uses, which centers around replacing a source of wealth lost due to death. For many families, though, life insurance can serve many needs, including playing a role in estate planning.
Life insurance offers many benefits that can help meet a family’s financial goals. For instance, it can provide instant money that the family can use to pay debts, bills associated with final illness, burial expenses and costs of estate administration. Also it can serve to cover the cost of federal estate taxes, if such a liability exists. This benefit can be extremely important because, without such a source of money, the family might otherwise have been facing a forced sale of assets to generate needed cash.
If you own a business, life insurance proceeds may allow your surviving partner to buy your interest in the partnership interest, which would enable the business to continue as an on-going enterprise. Learn more about benefits related to maintaining business stability. These proceeds could also be the key to allowing an heir to buy a family member’s farm/ranch or other business at his/her death.
This Web site is intended for general information purposes only. It does not nor is it intended to constitute legal, tax or investment advice. Alliance America is not a lawyer, registered investment advisor or investment advisor representative, and is not engaged in the practice of law or the business of investment advice.