Life insurance can be beneficial in numerous ways to estate plans – even for those who are older with less means. Here are but a few ways it can be helpful:

  1. Provide long-term care benefits. Some policies allow you to add a rider for long-term care benefits.
  2. Equalize beneficiaries’ inheritances. Sometimes, one beneficiary (i.e. one child) has received much more in life than another beneficiary (i.e., another child). Life insurance can be used to try to be more equitable.
  3. Economic security for surviving spouse. When one spouse dies, one of the two Social Security checks stop and pension income could either be eliminated or reduced. Life insurance can provide greater economic security for the surviving spouse.
  4. Freedom to spend on yourself but know your beneficiary still gets an inheritance.
  5. Help pay immediate expenses or taxes when you die. Life insurance may prevent your representatives from having to sell assets to cover expenses.
  6. Buy out interest of a deceased business partner.

It should also be noted that life insurance is protected from the reach of creditors and the death benefits are income tax free.

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