Life and Health Insurance

Income Replacement
For most people, their key economic asset is their ability to earn a living.   If you have dependents, then you should consider what would happen to them if they no longer have your income to rely on.

Pay outstanding debts and long-term obligations
Consider life insurance so that your loved ones have the money to offset burial costs, credit card debts and medical expenses not covered by health insurance.  In addition, life insurance can be used to pay off the mortgage, supplement/retirement savings and help pay college tuition.

Estate Planning
The proceeds of a life insurance policy can be structured to pay estate taxes so that your heirs will not have to liquidate other assets.  If you have a favorite charity, you can designate some of the proceeds from your life insurance to go to that organization.