Life insurance can create an instant estate. Paying estate taxes and other estate settlement costs. Federal Estate Taxes are due nine months after death. Funding a business transfer. Business owners often agree to buy a deceased owner's share from his or her estate after death.
Life insurance provides the ready cash to finance the transaction.
Funding college for children or grandchildren. Cash value increases, in a policy on a minor's life or the parent's life, can be used to accumulate funds for college. Paying off the home mortgage. Many people would like to pass the family residence to their spouse or children free of any mortgage. Often a decreasing term policy is used, which decreases in face amount as the mortgage balance is paid down.