Explanation
Life insurance can provide immediate liquidity when estates contain illiquid assets. Coverage design should account for timing, beneficiaries, and expected obligations at death.
Example
An with private business assets may need liquid claim proceeds to avoid forced sale pressure during settlement.
Common mistakes
Underestimating future liabilities and inflation can leave estates underfunded. Another mistake is failing to synchronize coverage reviews with legal planning updates.
Summary
Treat insurance as a coordinated liquidity tool, not a one-time purchase.