Can Life Insurance substitute for a Will? Curiosity piqued?ย 

Unfortunately, life insurance policies are not a substitute for a Will.

Envision your ๐–๐ข๐ฅ๐ฅ as a ๐†๐ž๐ง๐ข๐ž, awakening after your final rest to speak your truth, providing a clear roadmap for the transfer of your hard-earned assets.

On the other hand, a life ๐ข๐ง๐ฌ๐ฎ๐ซ๐š๐ง๐œ๐ž ๐ฉ๐จ๐ฅ๐ข๐œ๐ฒ is a direct agreement between you and the insurance company.

You pay premiums, and if you pass away while the policy is active and out of the contestability period, the company pays a death benefit to your designated ๐›๐ž๐ง๐ž๐Ÿ๐ข๐œ๐ข๐š๐ซ๐ข๐ž๐ฌ, which can include:

๐ŸŒŸ๐ˆ๐ง๐๐ข๐ฏ๐ข๐๐ฎ๐š๐ฅ๐ฌ
๐ŸŒŸ๐๐ฎ๐š๐ฅ๐ข๐Ÿ๐ฒ๐ข๐ง๐  ๐œ๐ก๐š๐ซ๐ข๐ญ๐š๐›๐ฅ๐ž ๐จ๐ซ๐ ๐š๐ง๐ข๐ณ๐š๐ญ๐ข๐จ๐ง๐ฌ
๐ŸŒŸ๐‚๐ž๐ซ๐ญ๐š๐ข๐ง ๐ญ๐ซ๐ฎ๐ฌ๐ญ๐ฌ.

It is suggested not to include your life insurance policy in your Will, because the life insurance proceeds can be distributed directly to your designated beneficiaries upon your death.

Life insurance proceeds typically bypass ๐ฉ๐ซ๐จ๐›๐š๐ญ๐ž unless beneficiaries predecease you and you haven’t updated your beneficiary details by removing and replacing these individuals on your policy.

To maintain control over who receives your life insurance proceeds, make sure your named beneficiaries are kept up to date. You can designate contingent and primary beneficiaries on a policy as well.

๐Š๐ž๐ฒ ๐“๐š๐ค๐ž๐š๐ฐ๐š๐ฒ๐ฌ:

Wills and Life Insurance are two separate vehicles that serve different purposes.

Life insurance policies provide a lump sum to named beneficiaries, it does not manage your estate or any other financial assets. 

A Will determines the distribution of your entire estate and financial assets.

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