Life insurance is a way to put away money to protect your family in the event of your death.
Life insurance can help your family settle your estate and support themselves. However, it isn’t the only preparation that someone should make in the eventuality of their death. You also should prepare a legal statement about your final wishes. This usually comes in the form of a Last Will & Testament.
A combination of your legal wishes and life insurance can help you protect your loved ones.
Why Life Insurance is Important Following Death
When you die, your family’s financial future likely comes into question. They might not be able to maintain their lifestyle or settle debts without your income.
Life insurance can help make up for this potential financial loss. Your family can use a settlement to pay bills, settle debts, and even afford funeral services. Your family likely will have a lot of leverage in making decisions about how to use this money.
However, if you have an expressed use for your life insurance funds, you must make these wishes clear.
Preparing Your Will
Most people dictate the proper distribution of their property following their death. Preparing a Will can help you legally enforce your wishes.
Include in your Will directions on the execution of your life insurance policy. Make sure that you designate a beneficiary on the policy. This is a person who receives the funds and distributes them. A beneficiary might be a spouse, child, other relative, or even a friend or lawyer.
A Will can cover much more than just instructions for your life insurance. You can often direct your beneficiaries how to dispose of even the most trivial of items. Some topics you should include in your Will:
- Instructions for your funeral, such as personal wishes for services.
- Your wish to refuse certain medical treatment or artificial life support at the end of your life.
- Recipients of financial assets, such as savings, retirement funds or stocks and bonds.
- Recipients of personal effects of value. These might include things such as art, jewelry, homes, cars, and other keepsakes.
Also leave instructions for your beneficiary on any outstanding debts or financial obligations. They might need to settle credit card bills or mortgages.
Make sure you execute your Will while you are still of sound mind and body. Also get certification from legal representatives to approve the Will by law. By doing so, you can safely provide financial assets for your survivors.
We’ve got you covered. ECI Agency, Inc. can help you get a Oklahoma City life insurance policy that meets your financial needs. Call us at (405) 373-2977 for more information.