The primary purpose of life insurance is to provide a financial benefit to dependents upon premature death of an insured person. By engaging in life insurance planning, these same benefits can be achieved while also avoiding possible tax consequences of the insurance value being “owned” by the Decedent. People generally purchase life insurance to provide income to replace lost earning potential, to fund business or partnership buy outs in the event of death of one of the business owners, to fund retirement plans, to indemnify a loan in the event of premature death, to pay for college educations, to provide dependency income for the family, and to protect future insurability. In some cases, you can borrow money from your life insurance policy at the present cash value. By using a life insurance Trust, there is no need to worry about taxes reducing the usefulness of the policy proceeds for your beneficiaries.