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<h1 class="article_title">Many Purposes for Life Insurance</h1>
<p>Life insurance is far more than just a decision of how much to buy. Depending on your financial situation, life insurance can be used for a variety of purposes, such as:</p>
<ul>
<li>Providing for your spouse and children</li>
<li>Paying off your mortgage and other debts</li>
<li>Transferring wealth or business interests</li>
<li>Accumulating cash on a tax advantaged basis</li>
<li>Achieving estate tax liquidity</li>
</ul>
<p>Life insurance is like auto insurance in that you can buy a lot of it or not very much at all. Life insurance differs from auto insurance in that, depending on the type of policy you buy, you can pay a lot or a little for basically the same death benefit. Keep in mind, though, that the younger and healthier you are, the less you will pay for coverage. Life insurers really, really like to have their policyholders around for a long, long time.</p>
<p>So how much life insurance do you need? It depends. One common benchmark is your death benefit should be about six to eight times your annual earnings, but there are a variety of factors to consider:</p>
<ul>
<li>Other income sources.</li>
<li>The size of your family.</li>
<li>Whether your spouse works and his or her earning capacity now and in the future.</li>
<li>The number of people who are financially dependent on you and for how long.</li>
<li>The death benefits your family will receive from Social Security and any life insurance plan at your work.</li>
<li>And any special needs such as mortgages, college education funds and estate planning.</li>
</ul>
<p style="text-align: center;"><a href="/consumer-reports/circle-of-safety/protect-family-life-insurance.asp"><< Protect Family Life Insurance</a> | <a href="/consumer-reports/circle-of-safety/">Index</a> | <a href="/consumer-reports/circle-of-safety/adequate-death-benefit.asp">Adequate Death Benefits >></a></p>
<p> </p>
<p>Need life insurance?</p>
<ul>
<li><a href="/offers/mortgage-life-insurance.asp">Mortgage</a> - Protect you home and household with mortgage life insurance</li>
<li><a href="/offers/key-man-life-insurance.asp">Key Person</a> - For businesses to protect the bottom line.</li>
<li><a href="/offers/term-life-insurance.asp">Term Life</a> - Protect your family now with cheap life insurance.</li>
<li><a href="/offers/high-risk-insurance.asp">High Risk</a> - For people with illnesses or hazardous occupations.</li>
</ul>
2010-01-14T21:14:21Z
Purposes for Life Insurance, Some Reasons to Buy Life Insurance
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Circle of Safety Handbook. Buying life insurance is very important, before you begin, you understand why you should buy life insurance and understand what factors determine how much to buy.
purposes for life insurance, life insurance, insurance, life insurance plan
Many Purposes for Life Insurance
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2010-01-22T21:05:10Z
consumer-reports/circle-of-safety/life-insurance-purpose.asp