Personal Uses of Life Insurance (CH 3)

Vanita and Turan have an estate worth $10 million, most of which is invested in their family business. In order to pay the federal estate tax that will be due at the death of the survivor, the reason for purchasing life insurance would be for.

Estate conservation

What is a liquid asset?

Life insurance proceeds

An example of an liquid asset is

Real estate, precious metals, precious gems, farming, equipment, an a liquid asset is something that can quickly and easily turn into cash without losing its value. Life insurance proceeds, checking accounts, bakes savings accounts are not illiquid assets.

What uses life insurance death benefits to provide financial support for dependents win the primary wage earner dies

Survivor protection

What are personal uses of life insurance?

Survivor protection, estate creation and conservation, cash accumulation and liquidity, mortgage payoff

Selena is a single parent paying for her home. She is concerned about where her children will live if she suddenly dies. Her primary reason for purchasing life insurance is

mortgage payoff