Unfortunately, life insurance policies are not a substitute for a Will.
Envision your 𝐖𝐢𝐥𝐥 as a 𝐆𝐞𝐧𝐢𝐞, 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 𝐢𝐧𝐬𝐮𝐫𝐚𝐧𝐜𝐞 𝐩𝐨𝐥𝐢𝐜𝐲 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 𝐛𝐞𝐧𝐞𝐟𝐢𝐜𝐢𝐚𝐫𝐢𝐞𝐬, which can include:
🌟𝐈𝐧𝐝𝐢𝐯𝐢𝐝𝐮𝐚𝐥𝐬
🌟𝐐𝐮𝐚𝐥𝐢𝐟𝐲𝐢𝐧𝐠 𝐜𝐡𝐚𝐫𝐢𝐭𝐚𝐛𝐥𝐞 𝐨𝐫𝐠𝐚𝐧𝐢𝐳𝐚𝐭𝐢𝐨𝐧𝐬
🌟𝐂𝐞𝐫𝐭𝐚𝐢𝐧 𝐭𝐫𝐮𝐬𝐭𝐬.
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 𝐩𝐫𝐨𝐛𝐚𝐭𝐞 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.
𝐊𝐞𝐲 𝐓𝐚𝐤𝐞𝐚𝐰𝐚𝐲𝐬:
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.