Direct answer
It depends on your tax situation and estate size, as whole life insurance provides a permanent death benefit and potential cash value growth that can serve as a wealth transfer tool. Term insurance may be insufficient for this goal because the coverage expires before you pass away, whereas whole life offers a guaranteed payout regardless of when you die.
Financial planning guidelines regarding the use of permanent life insurance for estate liquidity and wealth transfer.
What this means for you
It depends on your tax situation and estate size, as whole life insurance provides a permanent death benefit and potential cash value growth that can serve as a wealth transfer tool. Term insurance may be insufficient for this goal because the coverage expires before you pass away, whereas whole life offers a guaranteed payout regardless of when you die.
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This page is informational and not a coverage guarantee or quote.