Planning for your own passing is important. It includes taking out a life insurance policy and writing a will. One question that frequently arises in this process is whether you need to list life insurance beneficiaries in your will.
Life insurance is a non-probate asset
Life insurance is a non-probate asset. Non-probate means that the item is passed directly to the person or entity inheriting it in the event of your death; it does not need to go through your will and be supervised by a probate court.
This is because life insurance is viewed as a contract between you and the insurance company. This means that you do not have to list the policy or its beneficiaries in your will.
But can you list your beneficiaries in your will?
If you want to, can you list your life insurance beneficiaries in your will? In making this decision, it is best to speak with an estate lawyer. The general consensus is that listing your life insurance policy and its beneficiaries in your will is not harmful.
In fact, it might make it easier for the beneficiaries to realize there is a policy to claim, if they are not already aware. However, if you do not want the policy and its amount to become general knowledge after your death, it should be left out of the will. Additionally, doing this could potentially cause the policy to become unnecessarily tied up in probate.
You cannot change beneficiaries in the will
Beneficiaries of an insurance policy can only be changed by notifying your insurance company and completing the proper paperwork. You cannot have certain beneficiaries listed on the policy and different ones listed in your will and expect the will to override the policy. Whatever is on the policy is what will determine the disbursement of benefits.
If you do not already have a life insurance policy, speak with an experienced insurance broker about getting one that will at least cover paying off any debt and providing for funeral expenses. To create or modify your will, contact an estate lawyer.
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