Syndicated Financial Columnist, Host of the weekly talk show Steve Savant's Money, the Name of the Game, Scottsdale Arizona
A will is a document that states your desire in the distribution of assets, power of attorney, health care directives and custodial care for children. The document is generally drawn up by an attorney and should be updated as changes occur.
Life insurance is a mortality product to defend against financial liabilities, future obligations and charitable intentions that surviving beneficiaries may face at the demise of the policy insured.
One big difference between a will and life insurance are that a will explains how assets are to be distributed; life insurance creates the assets. A will cannot create money. Life insurance, on the other hand, is paid into over years or all in a lump sum, and leaves a monetary benefit to survivors upon the insured person's death.
A will is not a very good idea in such states as California. Probate will take a long time to release your assets, and it will also take as much as half of the assets to costs, including court and attorney fees. With life insurance, the benefits go immediately to your family, and there are no taxes or costs of any kind involved. Talk with your agent. Thank you. GARY LANE, garylane@cox.net. 714 422 96169
.JPG){kind=avatar}
Life insurance is a mortality product to defend against financial liabilities, future obligations and charitable intentions that surviving beneficiaries may face at the demise of the policy insured.