I currently have a life insurance policy on myself for around $200,000. Its payable to my mother, or her next of kin should she be dead as well. Its enough to pay off all of my debts, cover a funeral, and have a little bit left over probably.

I have been contemplating upping the policy significantly, to give my mother enough to pay off her debts as well as leaving her some money (to help offset the death of a child and all), and/or to help my father pay of his debts/retire on time (parents are divorced).

Now I’m fairly certain I’ll have no problem upping my policy to $500,000 or a million and make it payable to my mother or next of kin as it is now. My question though is this. I have a lot of friends, co-workers, etc… who I know could use some money. If I were magically a millionaire now I would be the type of guy to give away 10 thousand here or a “loan” here to a close friend I trusted that I knew needed the money. Obviously I’m not in a position to do that…..... but, I can easily afford a life insurance policy on myself paying out a million dollars or more (given my age, health, income, etc, it would cost around less than $10 a month for the next few years).

Could I make up a will for myself, and in it specify how I want my life insurance policy to be split up.. including numerous close friends, co-workers, schools, etc, as beneficiaries of set amounts of the money?