FAQ - LIFE
Life insurance death benefits are distributed to the named beneficiaries of the policy. However, for distribution of your assets, it's important to create a living will in order to tell the probate court judge who should receive your belongings. This may also help to speed-up the process. Without a living will, probate could take an extended amount of time, and may be significantly more expensive.
What happens to all of my assets if I die?
What if I lose my job?
Here are some tips to help you prepare: It's a good idea for everyone to have between three to six months' salary put away in their emergency fund, should the unexpected happen. If you have a mortgage to pay each month, you should consider purchasing Life Insurance to help ensure your payments are made. Turn a negative experience into a positive one. Make it a learning experience! Take advantage of this opportunity to develop new job skills. Certain life insurance products offer living benefits (loans or withdrawals) that can help make it financially feasible for you go back to school and acquire new skills to stay competitive. Use this experience and your ability to cope with change as a strength, when interviewing with prospective employers. Many employers are looking for people who can deal with change, not dwell on the negative, but instead have the ability to move with the times.
“Policy loans and withdrawals will reduce cash surrender value and death benefit. Policy loans are subject to interest charges. If your policy is a modified endowment contract, loans and withdrawals may be subject to taxes and penalties.”
http://money.usnews.com/money/personal-finance/articles/2012/05/30/that-elusive-emergency-fund-why-you-need-it