Choosing a Life Insurance Beneficiary
Selecting who will receive your life insurance beneficiary should be easy, right? Even if you have someone in mind, choosing the right person is a big decision, and certainly one that shouldn’t be glazed over. To help you decide, weigh up these considerations.
Keep the purpose of the policy in mind.
Life insurance can be used to cover many things, from funeral expenses, the mortgage, your spouse’s retirement plans, your child’s future tuition fees, or your business’s livelihood. Recall why you wanted to buy life insurance and what you want to protect. If you want to protect your family, your spouse may be the best choice. If you want your business to continue, then it might be your business partner.
Understand your options.
Generally, you can choose to designate any one or more of the following as a beneficiary:
- One person
- Two or more people
- A non-profit charity
- The trustee of a trust
- Your estate
Avoid choosing a minor.
In general, a minor may run into issues if listed as a beneficiary. To avoid getting a guardian and court hearings involved, think about either setting up a trust or designating an adult you trust to oversee the distribution of money to the minor.
Keep it up to date.
It is incredibly important to keep the beneficiary up to date in your policy documents. If you recently got married, divorced, or lost your named beneficiary, then your policy could get tied up. Review your policy at least annually to keep it relevant to your needs.
Talk to the expert insurance agents at Jack Stone Insurance Agency for a reliable life insurance policy that meets your needs and budget. Serving Brentwood, Antioch, and surrounding cities in California, contact us today. Please open our links in a new tab to continue enjoying our content!