Estate planning is a long-term effort that takes countless sacrifices, resources, savings and time. Making the right decisions as an estate owner when you are still alive is the easiest way of ensuring that your hard-earned wealth goes to your designated beneficiaries without significant hiccups. To achieve your objectives, you need to invest in Life insurance.
Why is life insurance so crucial in Estate planning?

Here’s why;

Eliminates wealth reduction by taxes

Life insurance plays a significant role in ensuring that your wealth is disbursed to the right beneficiaries without reduction by taxes and probates among others. Generally, receiving an inheritance through a will has higher chances of going through probate unlike the case with life insurance. All you have to do is select your primary and secondary beneficiaries and ensure that your beneficiary designation form is completed carefully then sit back.

Provides for Your Dependents

Life insurance is an integral part of estate planning if you want to guarantee your dependents financial security even in your death. Your loved ones can use the proceeds from your life insurance to settle your funeral expenses, pay debts, income & estate taxes, school fees and sort out day to day expenses without much struggle. In short, life insurance in estate planning gives you an opportunity to continue offering financial support to your dependents after your demise.

Your estate Preservation

One of the best ways of preserving your estate after your death is through Life insurance. Your life insurance covers various estate taxes, probate fees, capital gains taxes and registered plans taxes thus freeing your dependents from these expenses. For this reason, your designated beneficiaries will not be forced into disposing of any depreciable or non-depreciable capital property after your death to pay different expenses.

Keeps Creditors at bay

Creditors can easily make you roll in your grave unless you make the right decisions when alive and healthy. Insurance laws in most states exempt life insurance proceeds from seizure by creditors provided that your spouse, children, grandchildren or parents are the beneficiaries.

Giving to charity

Do you have a plan to leave money to your favorite charity? Well, life insurance is all you need to achieve your objective. Ensure that the charity you name as a beneficiary is rightfully registered with the relevant revenue agencies if you want to free your estate from any tax burden.


Investing in Life insurance is the smartest way of maximizing your wealth to ensure that your loved ones are comfortable after you’re gone.