Posted by Jason Colon in 
Are you thinking about purchasing a life insurance policy? Here are five different personal uses for life insurance to consider.
- Survivor protection – This is probably the most common use for life insurance. In addition to other needs, life insurance provides the money needed for both funeral and living expenses (i.e. income replacement).
- Estate creation – You can create an estate with relatively little money in the event of a premature death.
- Cash accumulation – Cash accumulation typically begins in year 3 and can become significant over time.
- Liquidity – Cash loans can be obtained by using the policy as collateral (assuming it has cash value).
- Estate conversion – Life insurance can help offset the costs of federal or state estate taxes.
