Does Life Insurance Help Estate Planning? 
In the simplest terms life insurance helps in estate planning because it creates a pool of money upon death . This money can be used for any purpose , but in most cases when estate planning is involved , it is used to pay estate taxes due . The main reason people do this is it allows other assets to remain untouched by the estate tax reach . Examples would be a business , investments , art work , real estate , etc. . that would n't have to be liquidated to pay estate taxes . So the easiest and simpliest way to look at life insurance in an estate plan is to pay off Uncle Sam so Uncle goes away . Nothing does it quicker or easier than life insurance . Estate Planning does n't have to be hard , people just make it that way . 