Including life insurance in your estate planning strategy can offer the following benefits to your beneficiaries:

• Immediate Liquidity: Life insurance policies pay out the death benefit shortly after the insured's passing. This immediate liquidity can be crucial in providing your loved ones with the necessary funds to cover expenses and address any financial gaps.
• Protection for Your Family Business: If you own a family business, life insurance can be used to ensure its continuity and provide the necessary funds for the smooth ownership transition. By designating a family member or business partner as the beneficiary, the insurance proceeds can help cover operational costs or facilitate a deceased owner's share buyout.
• Preservation of Assets: Life insurance also help preserve your estate by providing a separate pool of funds to cover expenses without depleting other assets. It allows your loved ones to retain important assets, such as real estate or investments, for future generations.

Survivorship life insurance is a policy that insures two individuals, mostly spouses, under a single policy. This insurance is particularly useful in estate planning for several reasons:

• Estate Tax Planning: Survivorship life insurance provides coverage for estate taxes that may be imposed upon the death of both spouses. A policy that pays out upon the second death provides the necessary funds to cover the tax liabilities without depleting the estate.
• Equalizing Inheritances: If you have multiple heirs and wish to divide your estate equally, a survivorship life insurance policy can ensure that each beneficiary receives an equal share. The policy's death benefit can provide additional funds to compensate for any discrepancies in other assets.

The best type of life insurance for estate planning depends on your specific needs and goals. However, certain types of policies are commonly used in estate planning, including:

• Term life insurance: Term life insurance covers a specific period, typically 10, 20, or 30 years. It is often chosen for estate planning purposes when temporary coverage is needed for a specific time frame, such as the duration of a mortgage or until dependents reach financial independence.
• Whole life insurance: Whole life insurance offers coverage for the insured's entire lifetime as long as premiums are paid. It provides a death benefit and accumulates cash value over time. Whole life insurance is often chosen for estate planning when permanent coverage is desired, and there is a need for a death benefit and a savings component.