You may want to preserve your estate value for your children. Life insurance can be purchased for a fraction of the total projected tax bill payable at death. Life insurance is sometimes acquired for a child as the beginning of a financial plan. Quickly paid up whole life plans or universal life plans with growing cash values are very inexpensive when children are young. The cash surrender value at a later date could be accessed to assist in funding a university education, starting a business, used as a down payment on a house or a car.
Business people find life insurance valuable to fund partnership agreements.
Upon the death of a business partner, surviving family are quickly and happily bought out for a fair price with life insurance proceeds instead of becoming unproductive new parners. Key person life insurance is also used to protect corporations against the loss of important employees without whom, the daily business would suffer. The proceeds from this kind of coverage gives a business time to find an appropriate replacement. Whole Life insurance or Universal Life insurance can provide additional income at retirement through policy cash values. Also more options are available in the use of registered retirement savings.