Life Insurance wouldn't be "life" insurance if it did not pay a death benefit.

Just like any other type of insurance (fire, auto, home) it is purchased for protection against any uncertain, untimely accident, disaster or premature death.

Life Insurance used to provide only "life" insurance. Today you can design you own policy to fit your needs and your budget.

· Family obligations
· Unpaid bills
· Minor children need to be provided for
· Replace the loss of income
· Retirement income

Life insurance is a product not owned by many Americans today. Many policies lapse, due to the struggle that some have with financial obligations.

If you are not a wealthy individual, life insurance is a must. Take another look at the points mentioned above. Think about them for a moment: If something to happen to you, who would take care of your family? Would your children go to college? Would your husband of wife have to re-marry in order to survive?

The answers for those questions have all been satisfied in the use of life products. As the head of your household, you owe it to your family to give them nothing less than the best.

· Churches
· Social Services
· Co- workers
· Other non-profit organizations

Have stepped in to help many families in the time of bereavement. Better known as pass the hat.

· Multiple Indemnity-(Accidental death) which pays double or triple the face amount of the insured.

· Principle Sum- is paid as an additional death benefit if the cause of death is due to an accident as defined by the policy.

· Accidental Death and Dismemberment (A.D. &D). This rider has to do with losing a limb, or the loss of sight in one or both eyes. Note: A dismemberment loss must usually occur within 90 days of the accident.

· Waiver of Premium- is a temporary coverage. Your premium can be waived during a period the insured has become disabled. The waiver of premium normally has a waiting period of six months, before the benefits begin. Some companies have a period of three months. So this means that you must be disabled and pay all the premiums for the duration period. Any premiums paid during the waiting period will be refunded. Waiver premiums also have an age limit up to either 60 or 65 years old.

· Waiver of Disability with Disability Income- This Rider also carries the same concepts of the age limit, waiting period and total disability. This rider will pay you (the insured) weekly or monthly disability incomes benefit.

· Guaranteed Insurability- This rider allows the insured to purchase an option against future changes in the need for insurance. This rider will allow you to purchase twice the amount of insurance of you face value at specified anniversary dates in the future without any evidence of insurability. This offer is a great protection that the insured can take advantage of. A purchase of a new home, other fine assets now need to be protected. However, the rate for this rider must be purchased at your attained age. I cannot be backdated to the original date the policy was issued. Usually after 40 it is no longer offered.

· Return of Premium- This rider is simply an increasing amount of term insurance that equals the total amount of premiums paid at any point during the effective term period. The policy owner is simply buying additional term insurance.

· Return of Cash Value- This rider is similar to the return of premium rider. It is an additional mount of term insurance that is equal to the cash value at any point during the effective term period.

· Cost of Living- This rider was designed to offset the concerns about inflation. Then this rider is attached, it will change the face amount each year about 5% and it is compounded annually.

· Additional Insured- This is a rider attached for the purpose of concerning family members. In most cases, it is cheaper to have family on one policy due to administration expenses than to have separate policies.

· Living Need- This rider allows a terminally ill person to obtain part of the insurance proceeds prior to death. The purpose of this benefit is to provide for the nursing, in-home care and other medical expenses. Most companies advance 40% of the policy proceeds.

· Long Term Care (LTC) - This rider is similar to the living need rider. It differs because the insured does not have to be terminally ill to receive proceeds from the policy. Usually this rider is sold as health coverage. Most companies will allow you to borrow up to 80% of the policy's death benefit. Terminal illness may be allowed up to 95% of the death benefit.

· The funeral, traveling family, burial services etc.
· The home
· Cars
· Credit cards
· Survivor's income
· Other Obligations

· Debts and Loans- Credit cards, car and educational loans.
· Funeral Expenses- This will depend on what your family has decided for you, or your own personal wishes.
· Emergency Funds- It is always wise to have some funds set aside for any urgent need. Some financial consultants recommend at least 6 months of income to be set aside.
· Education/ Tuition- It is wise that you have enough coverage to pay for your children’s education if they have not yet finished school.
· Mortgage: If you still owe a mortgage company, your policy should be large enough to pay this debt off.
· Other Obligations- These would include legal fees, divorce settlements and business contracts.

· Survivors Income- In many cases, some couples are blessed to survive each month on one income. But if the income is no longer present after death, will the spouse have to go to work? That is a question that needs to be asked more frequently.
· Social Security- This income may provide for some obligations, but not all.
· Other- Do you have any investments? Many Americans don't. They are living from paycheck to paycheck to and on credit cards.

· Investments- CD's (not compact discs), mutual funds and annuities can be in for cash if needed. It is very important to have these accounts

· Life Insurance- If you own life insurance great! Ask yourself, will your face value cover all your future expenses?

· Other- What about a Credit Union or other sources of income? Maybe you need to start a business that will produce income.