Life Insurance vs Will: Which One Is Better to Protect Your Family?

A common question people ask is whether they need life insurance or a will. These two tools are often confused — many think they serve the same purpose or that one can replace the other. However, while both aim to protect your loved ones, they serve very different functions.

What’s the difference between life insurance and a will?

Life insurance is a financial tool that provides economic support to your family when you pass away. Upon death, the designated beneficiary receives a death benefit, which can be used to pay off a mortgage, debts, college tuition, or help maintain the family’s standard of living. This amount is predetermined in the policy contract.

A will, on the other hand, is a legal document where you express your wishes for how your assets and belongings should be distributed after your death. It includes assets such as your home, car, jewelry, bank accounts, retirement funds, investments, and more.

Can I have both? Does one replace the other?

Here’s the key: a will does not replace life insurance, and life insurance does not replace a will — they are complementary.

For example, a father may designate his eldest son as the beneficiary of his life insurance policy. That son will receive the death benefit. However, in his will, the father might leave the house and car to his youngest daughter. That way, both children are protected, but through different legal instruments.

Which one is better: life insurance or a will?

The clear answer is: both. Each serves a different role in your estate planning.

If you only have life insurance, your beneficiary receives the money, but your other assets might end up in probate court where a judge decides who gets what. If you only have a will but no life insurance, your family could inherit debts and face financial hardship.

What should you do?

The best course of action is to speak with an estate planning attorney. They can guide you in properly structuring both your will and your life insurance according to your financial and family situation. Also, it’s important to inform your loved ones about the existence of both documents.

If you’re considering purchasing life insurance to protect your loved ones, contact Univista Insurance. We’ll help you choose the best option for your peace of mind.