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Published: Feb 05, 2006 12:00 AM
Modified: Feb 05, 2006 02:52 AM

LIFE INSURANCE ESSENTIALS

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Life insurance has three major functions:

* Replace the earning power of the family breadwinner(s),

* Replace the cost of services provided by a nonworking spouse, and

* Provide liquidity for an estate by guarding against the forced sale of assets under unfavorable conditions to meet the family's current cash needs.

When determining how much life insurance you need, also consider debts, college expenses and retirement plans.

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