Importance of Having A Will & Life Insurance

Planning for final expenses, providing for your loved ones,  providing direction and your wishes of how you desire your assets to be distributed from beyond the grave should be a top priority.  While not the most comfortable topic, it may be one of the most important things you may ever need to do.

Having life insurance in place can determine the outcome a number of important decisions after your gone. 

Final Expenses – Life Insurance can be the difference between a dignified burial or cremation compared to a city burial.  Having a private plot in a nice cementary with your loved ones or family or being buried with strangers in a city plot. Final expenses can also be covered by visiting a local funeral parlor and setting up your arrangements and having a payment or prepayment agreement to cover the costs. Pre Plans are not as conventional as life insurance. These are most commonly found with individuals whose family has pre deceased them. It does provide direction and control.

Funds For Family, School, Housing, Child Care & Charities – Life Insurance proceeds can provide enough financial stability to have your loved ones continue to live in the family home, maintain current lifestyle, pay for education for your children, child care so that the surviving spouse can stay home and raise young children. Whether you have a family or not you may choose to leave funds to your favorite charity as well. Remember all life insurance proceeds are tax free to the beneficiary. A very important detail to the receiving party.

Life insurance allows you to leave a certain sum of money to the person, people or entity of your choice. The proceeds never pass through your estate which is why they are not taxable. Of course tax codes could change in the future but at this time they are treated accordingly.

A Will is a powerful instrument. It’s your way of communicating to those whom you have left behind how you desire or wish to be laid to rest, who may raise your children distribute your assets and much more.

Your will should be drawn up by an attorney and a copy should be kept by you in a safe place. The original is typically is held by the attorney. The lack of a Will creates a void in relaying your plans of distributing. 

First thing you can convey in your will is the way you wish to be laid to rest,. Picking your church, funeral parlor, arrangements, coffin, pall bearers, speakers prayer cards, desire to be buried or cremated, location where you will be laid to rest.

 If no Will exists the assets will go to the next closest blood relative. The heir must be related by blood and not by marriage. This means no brother in law, sister in law, aunt, uncle, cousin not related by blood. Can be an heir. If there are no children the next in line to inherit are the surviving parents and siblings. Without a Will it can lead to infighting amongst the family due to greed and other issues. This can lead to a long costly drawn out court battle and assets ending up being distributed to those you may not have wanted to inherit . It can also include claims against your estate by children you may have had, from more than one marriage. As long as they are your children they are entitled to their share. We have heard of a lot of sad stories about step brothers and sisters battling in the courtroom.
I can go on providing reasons to have Life Insurance and A Will but I think this has provided some insight into the importance of having these documents in place.

We have helped many individuals, parents and families plan for final expenses. If you would like to ask any questions about life insurance you can e mail me at fuscoinsuranceny@gmail.com

We would be happy to help you set up a review of your current plans or set up a plan to cover final expenses or leaving funds to your favorite charity..