If
you fill out an application for life insurance coverage, it will ask you:
"What is the purpose for your life insurance policy?" That is because
the purpose varies from person to person.
Some
of the more common purposes for which people buy a life insurance policy
include:
- To replace their income for their family.
- To hire others to replace their contributions to the family that would be lost
upon their death of the insured (daycare, transportation, cleaning services,
lawn services, etc.)
- To give a business time and resources to replace an employee when a key
employee dies.
- To pay off an outstanding mortgage loan, school loans, business loans, and
other debts.
- To pay for all final expenses, including funeral, memorial service, casket,
headstone, burial, etc.
- To leave a gift to a charitable organization.
- To pass their estate to their heirs and pay any estate taxes.
- To pay taxes, administrative fees, and debts upon the death of the insured.
- To pay for terminal illness expenses (when the life insurance policy has living
benefits).
- To provide cash value for retirement for a spouse.
Here's how you can request free life insurance quotes now.
