Should Life Insurance Be Included in Your Will?

Life insurance should not be placed in your will because the policy's beneficiary designation overrides any instructions in the will, ensuring the payout goes directly to the named person(s) without probate. Instead, keep the policy active, verify the beneficiary list, and update it whenever your personal circumstances change.

How Beneficiary Designations Work

When you name a beneficiary on a life insurance contract, that person receives the death benefit directly from the insurer. The insurer does not consult the will, and the funds bypass the probate process, which can be lengthy and costly.

Why Adding Insurance to a Will Is Unnecessary

Including a life insurance policy in a will creates a potential conflict: the will may name a different heir than the policy's beneficiary, leading to legal disputes and delayed payments. Courts typically honor the insurer's beneficiary form over the will.

When a Will Might Reference a Policy

Although the policy itself isn't in the will, you can mention it to remind executors to locate the policy documents, confirm the beneficiary, and ensure any unpaid premiums are covered. This reference helps avoid administrative oversights.

Steps to Ensure Proper Distribution

• Review and update the beneficiary designation after major life events.
• Store the policy documents in a secure, accessible place.
• Inform the named beneficiary of the policy's existence and location.
• Periodically check that the insurer has the correct contact information.

Common Misconceptions

Some think that naming a beneficiary in a will is sufficient, but only the insurer's beneficiary form controls the payout. A will can only direct assets that are part of the probate estate.

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