Uses of Life Insurance in Estate Planning

Most people think life insurance is used for only one specific purpose: to replace the lost earnings should a primary breadwinner pass away.

Those who subscribe to this theory often purchase low-cost, term insurance that expires soon after retirement.

However, viewing Life Insurance solely as “Breadwinner Replacement” ignores the wide variety of uses for life insurance, especially when it comes to estate planning.

Let’s examine the top five (5) Uses of Life Insurance in Estate Planning.

  1. Estate Creation
  2. Liquidity to Pay Estate Taxes
  3. Estate Equalization
  4. Family Business Solution
  5. Wealth Replacement

Click on a link above to learn more about each of these life insurance solutions.