When it comes to planning for the future, you may have asked yourself, “What should I handle first: getting life insurance or getting a will?” It’s not the easiest decision, but it’s an important one.
Why a Will Comes First
Creating a will is like drafting the game plan for your estate. It’s where you get to spell out all the big decisions: who gets what, who’s in charge of distributing your assets, and even who should look after your kids (or pets!) if something happens to you.
Without a will, the state essentially steps in and makes those decisions for you. Spoiler alert: they’re probably not going to make the same choices you would. By putting your will in place first, you’re making sure that everything, including your life insurance, aligns with your overall estate planning goals.
Think of it this way: your will is the foundation. Once you have that solid foundation, your life insurance policy can act as a financial cushion, providing immediate liquidity for things like funeral expenses, debts, and ensuring your beneficiaries are taken care of. But without that foundation, life insurance is just money floating out there with no clear direction.
Why Life Insurance Still Matters
This isn’t to say life insurance isn’t important. It’s incredibly important—especially if you have dependents who rely on your income. Life insurance can help cover expenses like mortgage payments, education costs, and daily living expenses for your family after you’re gone.
But here’s the kicker: life insurance payouts go directly to the beneficiaries you name in your policy. They skip the probate process (yay for them!), but that’s why it’s even more important to have your will in place first. Your will sets up the plan for your beneficiaries, which may include how life insurance proceeds are used, such as for minor children who might be too young to manage the money themselves.
By aligning your will and life insurance, you avoid any accidental surprises, like leaving life insurance money to a second cousin you barely know, while forgetting to include the people who matter most.
Do the Will First, Then the Life Insurance
If you’re trying to prioritize, start with the will. It’s the blueprint for your entire estate. Once that’s in place, you can add life insurance to bolster the financial side of things.
So, before you go comparing life insurance quotes online, think about what you want your will to say. Then, build everything else from there. Need help? That’s what we’re here for! Estate planning and life insurance aren’t the most fun topics in the world, but trust us—it feels a whole lot better once they’re done.