A 60-year-old client has a significant estate and is concerned about the tax liability on death. They want to ensure their beneficiaries receive the maximum possible inheritance. Which type of life insurance, if affordable, is generally the most strategic for estate planning in this scenario?

Question: A 60-year-old client has a significant estate and is concerned about the tax liability on death. They want to ensure their beneficiaries receive the maximum possible inheritance. Which type of life insurance, if affordable, is generally the most strategic for estate planning in this scenario?

Answer options:

• 20-year renewable term life insurance
• Decreasing term life insurance ✅ Permanent whole life insurance
• Term-to-80 life insurance

Correct answer: Permanent whole life insurance

Explanation: Permanent whole life insurance is generally the most strategic for estate planning in this scenario because it provides a guaranteed death benefit that can be used to offset potential tax liabilities on death, ensuring beneficiaries receive more of the intended inheritance, and does not expire as term policies do.