Life insurance can play an important role in a business succession plan. Following are some of the common ways in which life insurance can be
integrated with many of the tools, techniques and strategies commonly used in business succession planning.
Estate liquidity: Some business owners will wait until death to transfer all or most of their business interests to one or more of their children. If the business owner has a taxable estate, life insurance can provide the children receiving the business the cash necessary for them to pay estate taxes.