Congratulations! 🎉 Getting yourself that life insurance policy was a great decision. 👍 Buying life insurance is a sound financial investment that you and your family can significantly benefit from. Now that you have chosen a policy for yourself (or other family members), you can breathe easier knowing that your loved ones will have the financial support they need in times of crisis.
Your life insurance policy entitles your family to a lump sum payout on your death. This will help make sure they can pay bills, mortgages, everyday expenses, etc., even when you aren’t there to help them.
But who does this money go to? In most cases, the person who receives your policy is your beneficiary. When you take out a policy you are asked who you would like the payout to go to, for most people this would be a spouse or children. If you have not named anyone, it goes directly into your estate. This is then handed out as part of your will, if there is no will, your next of kin receives it (as is the hierarchy suggested by U.K law).
Reasons you should get a will made
It will make it easier for your heirs to have access to your assets
Your loved ones can have a hard time gaining access to your assets after your death. Digital assets 💻 like account passwords and net banking details are often guarded heavily by tech companies. There have been numerous cases (and one riveting Black Mirror episode!) where family members have permanently lost access to all of their deceased relative’s social accounts. You can use your will to transfer these and any other assets to specific beneficiaries.
Assign a legal guardian for minor children 👱
The untimely death of a person is a difficult situation, but it does happen. If you have children, you might want certain people to look after them if something like this happens to you. A will can help you assign the legal guardianship of your children to a trusted friend, a cousin, a loving aunt, or anyone else.
Note: Written consent from both parents is needed to appoint a legal guardian.
Provide funeral instructions
One of the many things your life insurance payout can help pay for is the funeral you want. But will having the money be enough for your family to execute this? You can use your will to provide detailed instructions for your funeral. ⚰️ These can be anything from general arrangements for the ceremony to a specific burial plot that you wish to get. This will help you get the funeral you have in mind and save your family the trouble of making arrangements during a difficult time.
Assign an executor to your estate
An executor is a person who is legally responsible for wrapping up your affairs and managing your business and estate after your death. Being an executor is a huge responsibility that you want to make sure the person you have chosen is ready for. This will ensure that your assets are managed by a trusted, capable person of your choice.
How getting a will is different from life insurance
Managing the financial and personal affairs related to a person’s death consists of (mostly) 2 things.
- Getting the resources (money, assets) needed to execute the person’s wishes.
- Coming up with a detailed plan to do so.
Life insurance helps your family get the money they need to manage things after your death. A will gives them the necessary guidance to distribute these assets and manage your affairs just the way you’d want them to. 🥰
Now that you have a life insurance policy that suits you best, getting a will is the next step for you. 🙌 Together, these ensure the safe and stress-free financial future of your loved ones.
At Bequest, we help people provide for their loved ones in life and death. We help you breathe easier knowing that your loved ones will always be looked after through our life insurance policies and easy to make digital wills.🧘 If you are looking to make a will, check us out!