May 1997 React to this article in the Discussion Forum. Life insurance is usually not a particularly popular subject to discuss. However, if purchased wisely, life insurance can be used to meet many different needs of the policy holders.
Life insurance is unique.
No investment or asset can provide the purchaser with such extraordinary leverage and the ability to create liquidity when, in many cases, it is most needed. A young professional looking to create an estate in order to replace future income lost to the family in the event of a premature death cannot make a better purchase. But not everyone falls into this category. Obviously, most people purchase life insurance solely for the ultimate payout upon the death of the insured in order to provide for their dependents. However, life insurance can also be used to pay death taxes and estate settlement costs, to shift wealth from one generation to another or to benefit selected charities.