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Financial experts generally consider life insurance to be a cornerstone of sound financial planning, for several very important reasons:
1. Income replacement -- For most people, their most valuable economic asset is their ability to earn a living. If you have dependents, then you need to consider what would happen to them if they could no longer rely on your income. A life insurance policy can also help supplement retirement income, which can be especially useful if the benefits of your surviving spouse or domestic partner will be reduced after your death.
2. Pay outstanding debts and long-term obligations - Without life insurance, your loved ones must shoulder burial costs, credit card debts, and medical expenses not covered by health insurance using out-of-pocket funds. The policy's death benefit might also be used to pay off a mortgage, supplement retirement savings, or fund college tuition.
3. Estate planning -- The proceeds of a life insurance policy can be earmarked to pay estate taxes for larger estates so that your heirs will not have to liquidate other assets to do so.
4. Charitable contributions -- If you have a favorite charity, you can designate some or all of the proceeds from your life insurance to go to this organization. | 
