A life insurance policy may seem like it is already part of your estate plan. After all, when you die, your loved ones will get the benefits from the policy. However, this type of insurance can help in more ways than just as a benefit your loved ones get when you die. You can leverage your policy to help your heirs in a bigger way through your Pennsylvania estate plan. 

Forbes explains using a life insurance policy to offset taxes is an excellent way to maximize your estate plan. With a standard payout, your heirs may be on the hook for taxes on the money they receive. Alternatively, if you set up the policy to pay the taxes on your estate, it leaves all your other assets to your heirs without the worry about paying the tax bill. 

To be clear, though, you may not even owe estate taxes since the income limit for paying them is quite high. However, there are other taxes your heirs may have to pay. This is where the life insurance can come in handy. If you get a policy that will cover those costs, it can be very helpful to your heirs and prevent a hardship for them. 

You can also convert the life insurance into different types of accounts. A charitable trust, for example, can prevent taxation. Rolling it into Roth IRA is another option. It is important to think about taxation after your death because it can cause trouble that you do not want for your heirs. This information is for education and is not legal advice.