Advantage of Life Insurance in Estate Planning

Tom is a 45-year-old financial professional with a well-established career and a net worth of approximately $3 million. He is married to Lisa, and they have two children aged 8 and 11. As Tom thinks about estate planning, he is particularly concerned about minimizing estate taxes and ensuring that his children are financially taken care of in the event of his and Lisa's premature passing.

In this context, Tom is considering various estate planning strategies. He is aware of the benefits of utilizing life insurance as a part of his estate plan.

Which of the following statements best explains the advantage of using life insurance in estate planning?