You may need life insurance to make an estate more liquid -- pay the taxes without being forced to sell assets. The best thing about life insurance is that the beneficiary receives the proceeds free of income tax. There are also ways not to pay federal estate tax. 

    The American Council of Life Insurance, a trade association, provides information about life insurance policies on its website  www.acli.com To review life insurance coverage www.moneycentral.msn.com  is an excellent source of information. 

     A viatical settlement is the sale of a life insurance policy by the policy owner before the policy matures. Such a sale, at a price discounted from the face amount of the policy but usually in excess of the premiums paid or current cash surrender value, provides the seller an immediate cash settlement. Generally, viatical settlements involve insured individuals with a life expectancy of less than two years. Despite the bad experience of some investors, viatical settlements remain often valuable tool for the personal financial management of many ill people. Get bids from several companies before you except any offer. The settlement may be subject to income taxes.