It's getting pretty tough to declare it while you are still kicking. It's a pretty good idea to try and cover those debts since in some cases, they can come after family member's for it. Plus, it's nice and all to leave your car to your Sis when you die, but it sucks when she sees the payments she is going to have to take over!LOL. I actually have two policies: One for about $50,000 and another for about $20,000. Got them both in college pretty cheap. The second one is for fun. By that I mean it is meant for a group of friends to buy a boat with when I die, take my ashes out in the ocean and toss them overboard. Then, buy as many kegs as they can with what ever is left over. We all made the same basic type of deal. It's actually in my will. Unfortunately, it might not be enough. The list of people who want to party in the event of my death keeps growing....