The
main purpose of life insurance is to provide financial help to your
family should you die unexpectedly. The money your dependents, such
as your spouse and children, will receive from life insurance is called
a death benefit.
Life insurance is an important financial resource which can be used
to pay-off the mortgage, college tuition bills, and other debts. Income
generated by the death benefit is designed to replace the income that
would have been generated by your job.
Having a life insurance policy, protects your family from having to
sell assets to pay outstanding bills. Your family will not have to
pay federal income taxes on the proceeds of your life insurance policy.
