If you’re searching for a life insurance policy, you probably have a checklist of what you want in a policy, such as affordability and adequate coverage. But have you thought about who you will name as your beneficiary or beneficiaries? You want to make sure that you designate the right person/people as your beneficiaries so that your final wishes are honored. So how should you go about choosing a beneficiary?
When choosing your beneficiary, you should be aware of some special considerations in the case of certain kinds of beneficiaries:
- Underage beneficiaries– If you have children, you might want to name them as beneficiaries of your life insurance policy. But you need to be aware that if they are not of age to receive the death benefits, you will have to set up a trust or appoint a guardian to control the money until they are of age.
- Unreliable beneficiaries- If the person that you would like to name as beneficiary is not responsible with money, you might want to consider putting the money into a trust or appointing someone else to manage it. In this case, you can provide instructions for how the money should be given out.
- Secondary beneficiaries– Sometimes it’s good to have a second beneficiary listed in case something happens to your first beneficiary: for example, if they pass away before you and you don’t get a chance to update your policy. The secondary beneficiary will be listed as a contingent beneficiary, and will receive the money if the primary beneficiary is unable to.
- No beneficiaries– If you feel like you don’t want to leave any money behind to anyone, but you have a policy and don’t want it to go to waste, you do have the option of choosing no beneficiary. You can put all the money into a trust, pay off debts, or leave it to a charity of your choice.
When you choose a beneficiary, make sure that you have all the necessary information listed on your policy, such as their name, their relationship to you, and how your insurance company can reach them. In addition, make sure that you notify your beneficiary so that they are aware of your policy; you should also be sure to leave them a copy of any documents they need for when the time comes to claim the death benefits. This will make the process go more smoothly for them at a difficult time.
Your family has financial obligations that will not go away when you are gone; they will need your help more than ever with expenses. Not only will they have to pay for your funeral expenses, but they will have bills to stay on top of without your help, debts, and more. The last thing you want them to worry about is money while they are grieving. There are many great affordable life insurance options to choose from that will provide enough financial security for your family, for a low monthly price. The best way to find the right life insurance policy for you and your specific needs is by working with an agent who specializes in life insurance. We have provided the top life insurance companies in the nation below; each offers hassle-free assistance and the most competitive rates. Always check multiple sites to make sure you have bargaining power and know the advantages of each company. Make sure a hard time isn’t made harder by a financial burden, check life insurance rates today.