Will

What Does Will Mean?

A will is a legal document in which a person outlines their wishes regarding who should inherit their assets and property after their death, often with the assistance of a lawyer. In the context of insurance, a will is closely tied to life insurance. While life insurance provides a death benefit to beneficiaries named by the policyholder, a will distributes assets to beneficiaries named by the decedent. These beneficiaries are often the same individuals, such as a spouse or child of the decedent. Because the two documents work independently, the person named on a life insurance policy receives the payout regardless of what the will says, which is why it pays to review the life insurance beneficiary rules before assuming a will alone covers everything.

A will is also referred to as a last will and testament.

Insuranceopedia Explains Will

An important aspect of estate planning, a will ensures that the testator’s wishes are carried out after their death. This legally binding document allows the testator to distribute their assets as they see fit. In the absence of a will, the government may intervene and decide that some or all of the assets should become state property. Additionally, a will helps minimize disputes among family members and streamlines the probate process for both the state and the heirs. Many people pair their will with a life insurance policy from one of the best life insurance companies so heirs have access to cash while the rest of the estate goes through probate.