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Life insurance serves several purposes. A sufficient amount of it can provide for your family and or loved ones after your demise. It can also help to pay for your funeral costs. It can be part of your estate or it can be in place of an estate for those who have no estate to leave behind. If the policy is a whole life as opposed to term, it will build up cash value which can be borrowed against, or even cashed in if need be. There are different payment options, it can be left as a lump sum or payable in a monthly annunity. It can also be payable to a heirarchy of beneficiaries such as a primary, a contigent benificiary and so on. It is also quite possible that it is exempt from certain taxes and creditors claims, but I'm not certain on this, can anyone else answer this one? Also, many policies include an accelerated death benefit that can be used in the event of a terminal illness or the need for assisted living and or nursing home care. You can also use whole life or universal life to allow you to have a more prosperous retirement. Ask your insurance agent about how whole life insurance can allow you to get the maximum benefit from your pension. In order for this to work you have to purchase the whole life insurance at an early age.

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โˆ™ 2010-09-15 12:23:07
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Q: What is the purpose of life insurance?
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Related questions

What is the purpose for having life insurance?

the purpose in having life insurance is if you have a heart attack or anything like cancer if you have life insurance then you don't need to pay for the treatment , you get to have treatment right away because your insurance pays for the treatment

What is the purpose of receivables insurance?

The purpose of receivables insurance is to get insurance for your company and keep it safe. Insurance is very important in many aspects in life and recivable insurance is great for companies.

What is the purpose of mortgage protection life insurance?

The purpose of mortgage protection life insurance is to protect the home from being lost in the event the mortgagee passes away. The life insurance will pay off the balance of the existing mortgage to the finance company.

What is the purpose of life insurance brokers?

Life insurance brokers offer different life insurance policies from different companies and help you to compare which one may be the best for you and your family.

Does the car insurance pay the debt when the owner dies?

Normal car insurance Liability, Collision, & Comprehensive will not pay off the loan. You would need to get the proper insurance for this purpose. Either life insurance or insurance for the purpose of loan payment.

Can an s-corporation shareholder deduct life insurance premiums?

Assuming the purpose of the insurance is for a buyout or keyperson, the answer is no.

What is the purpose of life insurance sales leads?

The purpose of life insurance sales leads is to help generate sales. If one has leads for possible sales then these in turn could possibly lead to policies being sold.

What is the basic purpose of insurance?

What is the basic purpose of insurance

What is the purpose of travel life insurance?

Travel life insurance is a type of insurance that calculates and accounts for the possibility of an individual's death while on vacation. If an individual dies while on vacation, the insurance covers possible and subsequent costs.

What is the best description of variable life insurance?

purchased for the secondary purpose of investing

Best description of variable life insurance?

Purchased for the secondary purpose of investing

Does the beneficiary of life insurance pay funeral costs when theres no estate?

Generally that is the purpose of the life insurance, to cover the funeral costs. Who else is going to pay?

If you die without health insurance who pays the hospital bill Is the surviving spouse liable Can a lien be placed on life insurance proceeds?

That is the purpose of Life Insurance, to pay those bills and the cost of a funeral.

When you hit a tree does a life insurance policy pay?

No. If the person dies in an accident it would, but not on purpose.

What exactly is a life insurance company?

A live insurance company is a company that holds a "life insurance" policy on a person. The policy is taken out by a person and fees are paid. And, if for some reason the person's life ends, the policy is paid out to the beneficiaries as long as the death was not done on purpose.

Can you use money from term life policy to purchase a home?

Yes, if you are the beneficiary, you can use the life insurance benefit for any purpose.

What is the purpose of life insurance protection?

In simple terms, the purpose of life insurance protection is to provide surviving dependents or select family members with money to cover certain expenses in the event of a provider's death. Usually, this money from a policy goes to a surviving spouse or children.

What is the purpose of a disclosure statement in the life insurance policies?

To explain features & benefits of a proposed policy to the consumer

Do you need a will for life insurance?

You do not need a will for life insurance. I don't have a will, but I have life insurance. ;)

What are the various types of life insurance policies?

Generally there are 3 types of of life insurance policies:Whole Life InsuranceTerm Life InsuranceUniversal Life Insurance

Which type of insurance contract requires a lump-sum or periodic payment in exchange for receiving periodic payments from the insurance company?

Whole Life, Universal Life, as well as Annuities can be used for this purpose.

Is the purpose for life insurance to provide protection against financial loses?

Life insurance policy covers protection against loss of lives only and not against any financial losses incurred whatsoever.

What products does AAA Life Insurance Company offer?

AAA Life Insurance offers three main types of life insurance policy these include Whole Life insurance, Term Life Insurance and Universal Life Insurance.

What kind of cases do life insurance lawyers in Wichita, KS handle?

The following are the types of life insurance lawyers in wichita •Life Insurance for Smokers •Life Insurance for NonSmokers •Business Life Insurance •Universal Life Insurance

Life insurance is effective?

Life Insurance chiefly is a risk management tool meant to offer financial protection to your dependents in the unfortunate event of your death. If you are adequately insured, your life insurance should enable your dependents (spouse, children, parents( to maintain their current life style and pursue the life goals-till such a time as they are in a position to set up an alternative income stream by themselves. That's the basic purpose of life insurance.