What are the general purposes of Life Insurance?
Life insurance is a unique asset that is used to solve some of life’s perplexing financial problems due to its potentially high yield and its tax-favored benefits. Life insurance can be used to: Create an estate. Where time or other circumstances have kept the estate owner from accumulating sufficient assets to CAE for his or her loved ones, life insurance can create an instant estate. Pay death taxes and other estate settlement costs. These costs can vary from a low percentage of three to four percent to over 50% of the estate. Federal Estate Taxes are due nine months after death. Fund a business transfer. Business owners often agree to buy a deceased owner’s share from his or her estate after death. Life insurance provides the ready cash to finance the transaction. College fund for children or grandchildren. Cash value increases, in a policy on a minor’s life or the parent’s life, can be used to accumulate funds for college. Pay off the home mortgage. Many people would like to pass t
