Last will and testimony as opposed to life insurance

You may know it as a ‘will’, in legal terms however, the paper you arrange before passing it on and assigning ownership of your money, property and other types of assets to relatives or others is called your ‘last will’ . “.

A will can have a number of important functions, including recording your final wishes about:

• Who is the executor of the terms of your will

• Who you choose as guardians of your minor children

• How to pay bills and taxes due

On the other hand, a life insurance policy is likened to a legally binding contract between the company issuing the policy and yourself. Unlike the will, it can both protect and promote your current finances. In addition, it can take care of the financial needs of your loved ones after your death – all with no tax liabilities. It can also pay for any tuition fees, estate taxes, and other debts you leave behind. In addition, if included in a death or burial benefit, a death or burial allowance can provide the finances to pay for your funeral, plot, headstone, and related expenses.

Life insurance can be divided into three different categories.

1. Term

This form provides protection for a period of time and for the most part can be converted to full life insurance should you decide to do so.

2. Whole

This form is about permanent coverage that stays with you for the rest of your life. It can also be used as an investment as it builds cash value over time.

3. Universal

This policy is a kind of whole life insurance policy that comes with a more flexible premium payment, nominal amounts and a non-bundled pricing structure. It can build cash value at an adjustment rate that will generally never fall below a certain percentile.

When it comes to the grand way in which life insurance overrides the terms of a will, take note: If a person leaves both a will and a life insurance policy, a conflict of interest can arise when two beneficiaries are named – one as the beneficiary of the will. most of the assets named in the will and the other as the beneficiary of a major insurance policy infringing what the will apparently dictates. In such a case, it is the life insurance policy that takes precedence over the will – with money placed in the policy and given to the beneficiary of the policy.

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For more information about life insurance and its benefits versus those of a will, contact the professionals at an experienced independent insurance firm.