Unfortunately, life insurance policies are not a substitute for a Will.
Envision your ๐๐ข๐ฅ๐ฅ as a ๐๐๐ง๐ข๐, 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 ๐ข๐ง๐ฌ๐ฎ๐ซ๐๐ง๐๐ ๐ฉ๐จ๐ฅ๐ข๐๐ฒ 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 ๐๐๐ง๐๐๐ข๐๐ข๐๐ซ๐ข๐๐ฌ, which can include:
๐๐๐ง๐๐ข๐ฏ๐ข๐๐ฎ๐๐ฅ๐ฌ
๐๐๐ฎ๐๐ฅ๐ข๐๐ฒ๐ข๐ง๐ ๐๐ก๐๐ซ๐ข๐ญ๐๐๐ฅ๐ ๐จ๐ซ๐ ๐๐ง๐ข๐ณ๐๐ญ๐ข๐จ๐ง๐ฌ
๐๐๐๐ซ๐ญ๐๐ข๐ง ๐ญ๐ซ๐ฎ๐ฌ๐ญ๐ฌ.
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 ๐ฉ๐ซ๐จ๐๐๐ญ๐ 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.
๐๐๐ฒ ๐๐๐ค๐๐๐ฐ๐๐ฒ๐ฌ:
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.