Life insurance is used as part of an estate plan and has many uses including income & probate taxes at death, mortgage and other debt repayment, income replacement, educational expenses, and wealth accumulation for heirs. It is also used to fund business buy-sell arrangements.

Proceeds from life insurance are generally paid out tax free to beneficiaries and are kept separate from the estate.

For tax planning purposes, life insurance should be considered an asset not an expense.  Read more…