While death benefits are often designated for funeral expenses and income replacement, life insurance is a very flexible type of coverage that can be used in numerous ways.
- Cost of living: Life insurance can cover your family's vital expenses after your passing, such as the payment of your mortgage, outstanding debts and children’s college tuition.
- Trusts and charities: You can use life insurance policy to create a trust as a financial legacy for your heirs, a chosen charity or other organization.
- Retirement and estate planning: A permanent life insurance policy can be structured to cover your living costs during your retirement or for estate planning, and can even cover the cost of your life insurance premiums.
- Business continuation: Business owners often purchase life insurance that can help protect their business in the event they die unexpectedly. For example, a business owner can construct a buy-sell agreement that pays benefits to one or more surviving co-owners who can then purchase the policyholders share of the enterprise.