Page 18 - Life Assurance

- Gift Fund
- Fund of emergencies

An advantage of the needs approach to an
estimation of human life value is that it may
focus attention on specific objectives in the
purchase of life insurance. Life insurance
purchased for a certain need can be arranged in
the most appropriate way to provide funds for
the need.

Insurance bought to provide an income
for children's education can be setup so that
the insurer holds the funds until a given date and
then pays out the income during the college
period.

Insurance is often purchased to offset high
estate and inheritance taxes levied on the
person's property after death. Without ready
cash to pay these taxes, the asset might have to
be sold at forced sale, thus causing unnecessary
losses to dependents. Life insurance bought for this
purpose can be paid in a lump sum to the estate of
the deceased, and thus be made available for taxes
and other costs.

Life insurance purchased to pay off a
mortgage can be setup so that no matter
when the property owner may die, there is a

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