Purposes Of Life Insurance

Life insurance is used in many personal, business and charitable contexts. Some of the most common uses of life insurance are:

  • Key Employee
  • Executive Recruitment and Retention
  • Business Continuation
  • Succession Planning
  • Debt Coverage
  • Buy/Sell
  • Family Coverage
  • College Funding
  • Debt Coverage
  • Asset Creation
  • Estate Tax Liquidity
  • Gifting Leverage
  • Retirement Income
  • Asset Replacement
  • Gift Creation
  • Gift Leverage


Provides funds to aid in the search for a replacement in the event of the death of a key employee.
Used to provide a variety of non-qualified benefit programs to help attract and retain key employees.
Provides funds to aid in the continuation of business in the event of the death of a key revenue generator.
Provides liquidity to purchase the ownership interest of a deceased owner.
Creates a pool of money that can be used to pay off lines of credit.
Pay a death benefit to a business partner or corporation to purchase the deceased’s share of the business from his or her estate.


Provides a source of cash for surviving family members to utilize for living expenses.
Provides a funding source for college education of children or grandchildren.
Generates cash to pay off an existing mortgage or other personal debt.
Provides funds to leave as an inheritance or to equalize inheritances among family members.
Creates liquidity to pay estate taxes rather than requiring liquidation of existing estate assets.
Leverages the use of the annual gift tax exclusion, the lifetime exemption and/or Generation Skipping Transfer Tax exemption.
Provides a pool of money to help supplement other retirement income available.


Used with many charitable gifting programs to replace for heirs the value of estate assets that were gifted to charity.
Used to create a significant donation to a charity at death.
Used to maximize the eventual charitable donation at the death of the insured.