Let's talk about life insurance and estate planning.
Life insurance is a way to ensure that your loved ones have assets and funds if you pass away. It's a great financial planning tool. But how does it play into estate planning?
For one, life insurance proceeds can provide your estate with some liquidity to pay your estate administration costs. These could include estate taxes, probate fees and liabilities of the estate.
This can be a huge benefit for those whose estates do not have ready and liquid funds to pay off their expenses.