How Life Insurance Can Help You Preserve Your Wealth

Life insurance not only provides liquidity for your family to cover immediate expenses after you pass, but it also can minimize estate taxes.

A piggy bank is enclosed in a protective bubble against a pink background.
(Image credit: Getty Images)

At its core, estate planning is about ensuring that your assets are distributed according to your wishes once you’ve passed away. It's also about minimizing the financial burdens on your loved ones to make the process as smooth as possible during a difficult time. Life insurance plays a crucial role in this process, offering a range of benefits that can help preserve your wealth and provide for your family's financial security.

One of the primary benefits of life insurance in estate planning is its ability to provide immediate liquidity. When someone passes away, there are often significant expenses that need to be covered such as funeral costs, outstanding debts and estate settlement fees. Life insurance can provide the necessary funds to cover these expenses quickly, ensuring that your loved ones aren't left scrambling to come up with the money or forced to sell off assets at a disadvantageous time.

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Justin Stivers, Esq.
Estate Planning Attorney, Stivers Wealth

Justin B. Stivers was born in Florida but raised in Knoxville, Tenn. He pursued his undergraduate education at Appalachian State University in Boone, N.C. After graduating, Justin served three years in the United States Peace Corps, living in a rural coffee farming community in Honduras. This experience not only enriched his life but also helped him become fluent in Spanish. Upon completing his service in Honduras, Justin attended law school at the University of Miami in Miami, Fla. He lived in Miami for the next 15 years, during which he built a successful estate planning law firm. In this role, Justin helped families plan for their futures, feeling a sense of accomplishment and service.