Advantage 7.
There is no public record of the death benefit amount or to whom the death benefit is payable (if paid to someone other than the deceased’s estate).
Advantage 8.
The death benefit proceeds are generally not subject to federal income taxes.
Advantage 9.
The death benefit proceeds are often exempt from state inheritance taxes.
Advantage 10.
Life insurance policies can be used as collateral or security for personal loans. Although lenders generally prefer permanent types of policies because of the cash values, a term policy is often sufficient if the borrower is a good credit risk and the loan is very likely to be repaid unless he or she dies.