You may know this as a “will”, however, in legal terms, the document you arrange before you pass on that assigns ownership of your money, property and other types of assets to family members or others is known as a his “last will and testament”. “.
A will can have a number of important functions, including stating your final wishes about:

• Who is the executor of the terms of your will
• Who do you choose as guardians of your minor children?
• How to disburse the payment of invoices and taxes owed

On the other hand, life insurance is compared to a legally binding contract between the company issuing the policy and you. Unlike a will, it can protect and enhance your current finances. Plus, you can take care of your loved ones’ monetary needs after your death, all without tax requirements. You can also pay any unpaid tuition, estate taxes, and other debts you leave behind. Also, if included with a death or burial benefit, it can provide the funds to pay for your funeral, land, headstone, and related costs.

Life insurance can be divided into three different categories.

1. Term
This form offers protection for a specific period of time and, for the most part, can be converted to whole life insurance, if you choose.

2. Everything
This form implies permanent coverage that stays with you throughout your life. It can also be used as an investment if it builds cash value over time.

3.Universal
This policy is a type of whole life insurance that comes with a more flexible premium payment, face amounts, and a non-bundled pricing structure. You can build cash value at a set interest rate that will generally never fall below a specified percentile.

When it comes to the big way life insurance overrides the terms of a last will, pay attention: If a person leaves both a will and a life policy, there can be a conflict of interest when two beneficiaries are named, one as the beneficiary of the majority of the assets named in the will and the other as the beneficiary of a large insurance policy that violates what the will apparently dictates. In such a case, it is the life insurance policy that voids the will, and the money deposited in the policy is given to the beneficiary of the policy.

To learn more about life insurance and its benefits compared to a will, talk to the professionals at an experienced independent insurance agency.