Why Your Life Insurance Final Wishes Matter

Dealing with the subject of end-of-life insurance wishes is not always easy, but doing so helps guarantee your loved ones are looked after. To most, life insurance represents love, safety and making sure their family is financially protected. Having no final wishes on file can make families unsure of their loved one’s wishes and cost them additional costs.

Sarah, a mom who cared for her two children, got life insurance but never shared what she hoped for at the end of her life with her family. After she died, her family was confused about how to use the money, which added more pressures during this tough time. Be sure your family is safe from this—manage your loan situation now!

The instructions you leave for handling your life insurance

Final wishes with your life insurance tell your beneficiaries exactly how you want them to use the money from your policy. Such instructions may consist of things like:

• Paying for the arrangements of funeral and memorial services

• Getting rid of personal debts and outstanding mortgages

• Opening a college fund for your children or grandchildren

• Donate some of the money to a charity

• Taking care of your spouse or dependents financially

Planning your estate helps your family remember you in a way that does not cause any financial challenges.

Giving Instructions for Your Life Insurance

 

1. Think about What Is Important

Take time at the beginning to make a list of your core values. Is it important to you that your family get rid of debt? Do you want to support an issue that meant a lot to you?

2. Have conversations with your family members.

Have a conversation with your family about your life insurance wishes for after your death. Having this discussion ensures team members can see your goals and prevents confusion moving forward.

3. Select and name the people you wish to leave your assets to.

Check that the life insurance policy you take out has the correct people listed as beneficiaries. Check your financial plan after moments like marriage, getting divorced or the birth of a child.

4. Plan for What Should Happen After Your Death

Write down your wishes for the distribution of the life insurance money. Some things to include are:

• A will or trust to set out your estate wishes

• A letter stating what an individual asks for

• An executor who guarantees your plans are carried out

5. Get help from a financial planner or lawyer.

Having a professional assist, you can help you plan your life insurance final wishes to make things straightforward for your family.

How Life Insurance Helps in Preparing for a Funeral

Getting to Know the Costs for a Funeral

Paying for a funeral may be a big expense, as the total can be from $7,000 to $12,000. A lack of planning could make it difficult for your family to afford medical bills.

A Prepaid Funeral Plan is not the same as Life Insurance.

A prepaid funeral plan fixes the current costs but might reduce your freedom to change arrangements. With life insurance final wishes, your loved ones can use the money as they need to such as paying:

• Services taken care of by a funeral home

• Spoke about the options for burial and cremation costs

• Memorial expenses

How to Pay Funeral Costs through Life Insurance

Check that your insurance plan provides financial protection for these expenses.

• Write down the necessary funeral expenses in your end-of-life plans.

• Pick a person who is able to manage the arrangements.

• Always have a copy of your policy together with your other important papers.

Receiving the Most Benefits from Your Life Insurance

Getting Rid of Debt and Achieving Good Financial Health

Much of the time, families use money from life insurance to repay their mortgages, loans or debt. It safeguards the financial future of those left behind.

Instruction and Preparation for the Future

You could create a savings account for your children’s education, college or learning new skills.

Backing Charities and Causes

You could select that some of the money from your life insurance benefits be given to charities to make a positive difference in your community.

Tips for Preventing Errors When Making End-of-Life Arrangements

• Make sure to keep your list of beneficiaries updated so that problems do not occur.

• If you do not clearly tell your family – they may not understand your plan.

• Not dealing with taxes – Work with someone who understands how to reduce the taxes on your payout.

• Misjudging future spending – Think about inflation, higher prices and unforeseen changes.

You Should Secure Your Initial Assets Right Away

Setting up how you want your life insurance handled is a wonderful present for your family. Proactive choices now will keep you financially stable, reduce your family’s anxiety and mean you can give a lasting message of love.

Make sure to plan as soon as you can and give your family secure and confident future.

NICE INFORMATION