Life insurance must be a hard sell, pay us money and you’ll never see a return in your lifetime.

Maybe death insurance is a better option, you get paid money for being alive and you only pay the premium when you die.

If you default, you can’t be sued.

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Although shouldn’t life insurance actually be called death insurance?

To a layman, you are correct. But for someone who understands how transferring risk can benefit an estate, it's actually a pretty useful allocation. Implemented properly and at the right time of course.