July 9, 2009 | 1 Comment One excellent use for life insurance in the area of estate planning is to cover estate expenses. Typically, even a small policy can aid here. The policy pays out on the decedent’s death, and provides a quick lump-sum payment to heirs to fund many expenses, including: Estate, income, and capital gains taxes Real estate payments, such as mortgages Real estate transactions, such as home sales Commissions for liquidating assets (stocks, bonds, etc.) Cash to sell or run a business Cash to pay off business loans or personal debts Court costs and other legal fees