The most common reason for buying Life Insurance is to replace the income lost when you die. For example, say that you work, and that your income is used to support yourself and your family. When you die, and you pay checks stop, the Life Insurance proceeds can be used to continue to support the family members you have left behind.

Another common use of Life Insurance proceeds is to pay off any debts you leave behind. For example, mortgages, car loans, medical bills, and credit card bills are often left unpaid when someone dies. These obligations must be paid from the assets left behind. This can deplete the resources that your family needs. Life Insurance can be used to pay off these debts, leaving your other assets intact for your family to use.

Life insurance provide liquidity to your estate. When you die you may leave some liquid assets and some illiquid assets. Your liquid assets may not be enough to pay all debts that you have leave behind, plus all the expenses that arise because of your death (such as, funeral expenses and estate taxes). Your illiquid assets may have to be sold in order to meet these obligations when they come due. This may cause a financial loss. If the assets sold cheaply in order to get the money on time. Life insurance can avert this situation, because the proceeds are available almost immediately upon your death.

Finally, Life Insurance can be an investment vehicle. Some types of Life Insurance Policies may actually make money for you, as well as provide the benefits described above. This can help you with long term financial goals.

We all have a responsibility to protect those who depend on us with a sufficient amount of life insurance protection. Life Insurance is the cornerstone of your family's financial security. It can provide those who are left behind with a lifetime of financial security.