A legal document that specifies what a person wants or does not want should he or she become terminally ill or incapacitated. A living will ensures that your wishes are heard even if your medical condition prevents you from speaking for yourself.

The ability to easily convert an asset into cash without penalty. Savings accounts, checking accounts and money market accounts are examples of liquid assets.

An insurance policy that is paid to the beneficiaries of the deceased upon his or her death.

The average amount of time an individual is expected to live. Insurance companies use life expectancy to make benefit projections. As life expectancies have been increasing, individuals need to save more money to provide for longer retirements.