Co-Founder, Coastal Financial Partners Group, California
It is generally the other way around. The beneficiary of a life insurance policy will receive the death benefit at the death of the life insured. It is common for the spouse to be named as the beneficiary in a life insurance contract as it allows the death benefit to pass directly to the spouse without the need for probate. Its effect generally supersedes anything that a will or trust might say.
At the death of the insured, the beneficiary simply produces the death certificate, and the beneficiary’s interest in the benefit vests immediately and absolutely. That direct, absolute, and nearly immediate access is a powerful planning advantage. And, in most cases, the amounts paid directly to a beneficiary are not subject to the claims of creditors of the decedent.
Agent Owner, Gilmore Insurance Services, Marysville, Washington State
Unless the will or trust is directly referenced in the beneficiary section of a life insurance policy, then no, a will does not trump a life policy. These are two separate legal documents that only tie together if the life policy cites the will in it's beneficiary section. The life policy would pay out to whomever is named as the beneficiary.
No, a will does not trump life insurance. In fact, the insurance proceeds could be collected by the beneficiary listed in the life insurance policy before the will is even read. Life insurance money left to a beneficiary does not have to go through probate unless it is left to the estate or there are no living beneficiaries listed on the policy.
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At the death of the insured, the beneficiary simply produces the death certificate, and the beneficiary’s interest in the benefit vests immediately and absolutely. That direct, absolute, and nearly immediate access is a powerful planning advantage. And, in most cases, the amounts paid directly to a beneficiary are not subject to the claims of creditors of the decedent.