Your income can be considered your family’s most valuable asset. Your income is used to obtain the necessities of life and, of course, provide the creature comforts. The need for that income continues, whether or not you’re here to provide it. The following situations signal a need to consider purchasing life insurance.

• You have dependent(s)—a spouse, children, and/or an aging parent or disabled relative—and your retirement pension and savings are not enough to insure the future of your dependent(s).
• You have a sizable estate.
• You own a business.

Carefully chosen life insurance can help loved ones maintain their standard of living, even if you die.

In addition to the security life insurance provides for your loved ones, life insurance has investment value. Depending upon the policy you select, features may include:

Tax-Deferred Cash Values. Some types of life insurance build cash value over time. Tax deferred means that you do not pay taxes on the cash value accumulation; taxes are deferred until you receive funds from the policy.

Access to Funds. The cash value earned on a permanent life insurance policy can be withdrawn or borrowed against, to help with big-ticket items, such as a college education or down payment on a home. Of course, withdrawals and/or loans and unpaid interest on loans will reduce the death benefit (i.e., the amount paid if the owner of the policy dies).

Direct Payment of Taxes or Expenses. Life insurance benefits can go directly to your beneficiaries without going through probate, which can be a lengthy process. Life insurance proceeds can be used to pay funeral expenses and estate taxes without liquidating other assets. Keep this in mind when you review your life insurance and other financial plans. Check with a financial planner or tax professional to find out how recent and proposed changes to estate tax laws may affect your financial plans.