Cash value increases, in a policy on a minor's life or the parent's life, can be used to accumulate funds for college. Paying off the home mortgage. Many people would like to pass the family residence to their spouse or children free of any mortgage. Often a decreasing term policy is used, which decreases in face amount as the mortgage balance is paid down. Protecting a business from the loss of a key employee.
Key employees are difficult to attract and retain.
Their untimely death may case a severe financial strain on the business. Creating a retirement fund. Current insurance products provide competitive returns and are a prudent way of accumulating necessary funds for retirement years. Replacing a charitable gift. Charitable Remainder Trusts provide tax benefits and life insurance can replace the value of the donated asset.