It is said, "You buy life insurance to create an estate", but later in life, "you own life insurance to conserve your estate". If you possess capital assets such as commercial real estate, land, a family cabin, or company shares, your estate may need to pay capital gains tax on 50% of their increased value. Life insurance can provide your estate with the needed liquidity versus selling of assets.

Permanent life insurance can also provide equalization benefits for your beneficiaries, ie. if one of your children is named as the beneficiary for your RRSP/RRIF, there will be up to a 43% tax liability claimed against your estate. Permanent life insurance can provide the liquidity needed so your remaining beneficiaries are not strapped with this unforseen estate liability.