Most experts agree that Life insurance is the cornerstone of sound financial planning. It can be an important tool in many different situations like:

 

      If people depend on your income, life insurance can replace that lost income for  

      them in the event of a premature death. The most commonly recognized case of

      this is parents with young children. However, it can also apply to couples in

      which the survivor would be financially burdened by the lost of income.

 

      Even if you have no other assets to pass on to your heirs, you can create an

      inheritance by buying a life insurance policy and naming them as beneficiaries.

 

      Life insurance benefits can pay estate taxes so that your heirs will not have to

      liquidate other assets or take a smaller inheritance. Changes in the federal "death"

      tax rules between now and January 1, 2011 will likely lessen the impact of this tax

      on some people but some states are offsetting those federal decreases with

      increases in their state-level "death" taxes.

 

            By making a charity the beneficiary of your Life insurance, you can make a much

            larger contribution than if you donated the cash equivalent of the policy's

            premiums.