Can I give life insurance as an inheritance? Are there any estate planning benefits to this?

YES! If you have insured a child or grandchild, you can give the life insurance policy to the insured – the person who the life insurance benefit is on. This would transfer the cash value as an asset and of course the future death benefit as well. The beneficiary can be changed at any time. Grandparents may be the beneficiary of a child’s or grandchild’s policy, or the beneficiary can be parents. If you want to give a portion of your estate to grandchildren, taking a life insurance policy out on their parents is a savvy and efficient strategy to benefit your grandchildren. Wealthier families may have gift and inheritance tax issues.