Estate planning is a big financial and life decision, taking into consideration all your assets, properties, financial accounts, etc. Because it involves a lot of financial aspects, a lot of people are confused about the proper order in which to settle accounts, finding a financial advisor, or getting a new accountant. One of the most common inquiries is at what point a person should get life insurance — should it be before or after estate planning?

Does It Matter When You Buy Life Insurance?

Estate planning is all about preparing for the future, specifically, what will happen to a person’s assets when they pass away and to whom they should be given. This is the end goal of planning an estate, and as long as this end goal is in mind, it doesn’t matter when a person purchases life insurance or makes other financial decisions relative to their estate plan.

All Financial Decisions and Plans Can Adjust to the End Goal

Whether people purchase their life insurance before or after estate planning is of no significant consequence because these can always be adjusted as they go along to suit the purpose of the estate plan.

Some may opt to accomplish their estate plans first and then build their assets around them. For example, they can create their will or trust document and name their children as beneficiaries, determine how they will receive the assets, provide contingencies and conditions, etc.

When that plan is in place, they can move forward with other financial decisions and plans, such as buying life insurance, setting up their IRAs, getting a brokerage account, savings, checking, etc. Whatever financial situations are involved can easily be coordinated with the estate plan that’s already in place.

Others may opt to do it the other way around and buy all their assets first, get life insurance, etc. and later coordinate them to their estate plan when it is accomplished.

When You Buy Life Insurance Does Not Matter

The bottom line is that it doesn’t matter if a person buys their life insurance before or after setting up their estate plan. The timing does not affect the end goal. The most important thing is to make sure that they do accomplish it as soon as possible.