Your beneficiary is the person that you designate to receive the benefit from the insurance company. Generally the payment your beneficiary receives is not subject to federal or state income taxes. However, payments to your beneficiaries may result in estate tax liabilities. The purpose of life insurance is to provide funds to help preserve your family's financial future. The death of a loved one causes enough personal anguish without adding financial problems.
Life insurance can also keep personal business ventures afloat and our estates protected.
Most expenses will continue to increase by at least the amount of inflation. You'll need to consider this when you're deciding how much life insurance you'll really need. Clothing, food and transportation are just a few examples of costs that don't stand still. Find the fit that's right for you.