What Does Estate Mean?
An estate is the total collection of items of value that belong to a person. It is what they pass onto to their beneficiaries when they die. In the context of Insurance, life insurance is commonly used in estate planning, and it is often part of the estate that a decedent passes onto a beneficiary.
Insuranceopedia Explains Estate
Many people choose to purchase life insurance policies for the purpose of increasing the value of the estate that they pass on to their children, spouses or other beneficiaries. Moreover, life insurance proceeds or other cash value accumulated in the policy can help beneficiaries conclude the decedent’s affairs. The available sum is oftentimes also exempt from certain taxes. This can make life insurance even more appealing for estate planning.