You have business or estate planning needs that life insurance can satisfy. Your retirement pension and savings are not enough to insure your loved ones' futures against a rising cost of living. Life insurance can be used to pay estate taxes and funeral expenses. So, even if you have a substantial sum of money, life insurance can be a benefit. The proceeds usually go directly to your beneficiaries without going through the probate process.
Life insurance is a long-term commitment.
Remember that Term life insurance pays a death benefit only, while Whole, Universal and Variable life policies can supplement your income through withdrawals or loans against a policy's cash value. There are four basic types of life insurance to meet your individual needs. Term life insurance is the least expensive type of coverage, at least initially, and the simplest. These policies do not build up a cash value. The policy pays your beneficiary a fixed amount of money if you die during the term of the policy.