life insurance beneficiary Archives

Can I Leave My Life Insurance Benefits to My Pet?

What do you think about when you hear “life insurance”? You probably think about purchasing a policy so you can make sure that your spouse, children, or other loved ones can be financially secure after you are gone. But maybe you have another idea of who you’d like your life insurance money to take care of: perhaps you have a beloved pet you’d want taken care of in the event of your death. While pets can’t inherit money or possessions, some life insurance companies will offer you the option of setting up a trust to ensure that your pet is cared for after you’re gone.

Do You Need A Pet Trust?

If you have a pet that is expected to outlive you, you will need to make arrangements to make sure that it is taken care of after you’re gone. After all, pets are expensive: food, vet visits, etc can cost thousands of dollars a year, which could be a burden for your family or any person who will take on the responsibility of caring for your pet. If you think it will be difficult for your family members, or other designated caregiver, to take on these expenses, you should consider talking to a life insurance company about setting up a trust that will pay out benefits to them for the care of your pet.

Types of Pet Trusts

There are three different kinds of pet trusts that you can choose from, each with its own limits and considerations:

Traditional Pet Trust– With this type of trust, you will name a caregiver for your pet, and give specific instructions on how to take care of your pet. The trust will also designate a separate trustee who will be responsible for managing the money in the trust.
Statutory Pet Trust- With this kind of trust, you will not have the option to give specific instructions for how you want your pet to be cared for. Instead, there will be a designated lump sum of money set aside for your pet that the caregiver will use to care for it, as well as a second person to oversee the funds.
Pet Protection Agreement- This is a legally binding contract that is signed by you and your pet’s future caregiver, but it is not ideal for transferring large sums of money.

Finding An Affordable Policy

Your pet is your companion and best friend, and losing you will be hard enough on them. If you want to make sure your pet is taken care of when you pass, you can consider a life insurance policy that designates someone to take care of your pet, and leaves them the money necessary to do so.

There are many great affordable life insurance options to choose from that will provide enough money 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.

Contesting a Life Insurance Beneficiary

After the death of a loved one, there can often be a lot of paperwork to deal with while you are grieving. Dealing with your loved one’s insurance policy is often one of those things that need to be done, and there can sometimes be complications. For example, in some cases, a person named as a beneficiary in your loved one’s policy was no longer meant to be a beneficiary, but the policyholder never got the chance to change their policy. You should know that you can contest someone’s beneficiary status if you believe you have a valid claim (which means your position as a beneficiary can also be challenged), so it’s important to understand how to contest a beneficiary and how the dispute can affect life insurance payouts.

Why a Beneficiary Might Be Contested

There can be a few reasons why a life insurance beneficiary might be contested. Essentially, anyone who believes they have a valid claim to a life insurance policy can contest the original policyholder’s choice of beneficiary. The most common situations in which a life insurance beneficiary may be contested include:

A current spouse objects to a former spouse being named as the life insurance policy’s beneficiary
Adult children believe they should be named beneficiaries of a parent’s policy, or stepchildren who were never added to the policy believe they were left out in error
Someone believes the original beneficiary designation was made under duress or undue influence

The Process of Contesting A Beneficiary

Unfortunately, if a policyholder passes away without updating their policy, they leave the people who feel they should have been named as beneficiaries a long uphill legal battle. It can take a lot of money, time, and energy to contest a beneficiary, and the final decision will be made by a court, not the life insurance company. So, the whole process can end in you not getting any money, or losing a lot of the money you are rewarded (if you win) to court and lawyer’s fees.

Avoid the Hassle

The last thing that you would want is for your loved ones to have to have a court battle with the named beneficiaries of your policy because you never had the chance or forgot to change your policy. Ensure that your loved ones receive the financial support they need by reviewing your policy on a yearly basis, to make sure that everything is accurate.

Another thing that you can do is make sure there is enough coverage for your loved ones. To make sure you have enough coverage, you can add riders to your policy for additional coverage, or you can search for a new life insurance policy – you might find that you can get one that is better and more affordable.

If you need help reviewing your policy or deciding on a policy, consider using online tools to see what is available, as well as working with an agent who will help you compare plans and see which is the right fit for you. To get you started, we have provided the top insurance companies that offer life insurance policies below; each can give you hassle-free assistance and the most competitive rates in the nation. 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.

How Life Insurance Works With Your Will

If you have a life insurance policy, you’ve taken an excellent step towards protecting your family’s financial future. And if you’ve taken another step in that direction by writing your will, it is important to understand how your life insurance policy will work with your will. Both will distribute money to your loved ones after you pass, but in different ways. You might be wondering if you should include your life insurance policy in your will, or if you can use your will to distribute your life insurance, so let’s take a look at what you need to know when you have both a life insurance policy and a will.

Is Life Insurance Included In A Will?

last will written in pen — *Your life insurance death benefit can be included in the valuation of your estate in certain cases, but it is not considered an asset.*

A will is a legal document that lays out your final wishes and gives instructions for how you want your assets distributed after you pass away. This does not include assets that you own with other people, like a house, and it does not include your life insurance policy’s death benefit. Your death benefit can be included in the valuation of your estate in certain cases, but it is not considered an asset. This is because your life insurance payout is meant for your life insurance beneficiary once you die, and is only payable after your death in most cases, meaning it should not be included in your will.

The only time that your life insurance becomes part of your estate is if your named life insurance beneficiaries have predeceased you. In this case, the death benefit will be distributed according to your will and the beneficiaries named in it.

Does Your Life Insurance Need To Have The Same Beneficiary As Your Will?

The person/people named in your will and your life insurance beneficiary(ies) do not have to be the same people. For example, you can name your children as the beneficiaries of your life insurance policy, and at the same time, you can use your will to distribute assets to your spouse, or vice versa. You can also choose to make the beneficiary of both your life insurance and will the same person. Your will and life insurance policy allow you to have multiple beneficiaries, as well as primary and contingent beneficiaries. You can also change these beneficiaries at any point in time, if you need to.

Now that you are aware of the difference between the beneficiaries of a will and a life insurance policy, you know how these documents work differently, and how they can work together. Your life insurance policy will go to your specific beneficiary, and that does not necessarily have to be the same person you name as a beneficiary in your will.

If you’re on the lookout for a life insurance policy, there are many different kinds to choose from, including whole life insurance, term life insurance, and final expense insurance, so if you’re not sure where to begin, consider using online tools, or speaking with an agent. The right policy for you is out there! We have provided the top insurance companies that offer life insurance policies below; each can give you hassle-free assistance and the most competitive rates in the nation. 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.

How Does Life Insurance Work During a Divorce?

A divorce is one of the hardest things you can go through in life. On top of dealing with the loss of your love and partnership, you also have to deal with splitting everything you have built together between the two of you. When sorting all of these things out, one of the things you will have to consider is your life insurance policy: what exactly happens to it when you get divorced? Will you need to purchase a new policy?

Is Life Insurance Considered an Asset?

illustration of money — *Life insurance is not considered an asset in a will.*

When going through a divorce, you and your ex will most likely have to split your assets in half between the two of you. An asset is considered anything of monetary value, such as cash, real estate, and any other valuables that you own jointly. Life insurance is considered an asset in some cases, depending on what type of policy it is.

Term life, which covers you for a specific period of time, does not have cash value, so it is not considered an asset. But permanent life insurance, which is a life-long policy with a cash value that grows over time, can be considered an asset because of that cash value. So, if you have a permanent life insurance policy, it might be included in your list of assets, and you’ll have to split the cash value.

What If You Have Joint Life Insurance?

Joint life insurance covers two people for the price of one, which is why it is popular amongst married couples. If you did choose to buy life insurance jointly with your ex-spouse, you will have to consider dividing the policy with your ex-spouse, since joint life insurance policies are typically permanent life insurance policies. Speak to your life insurance company and ask for information on how to split the policy if you are interested in keeping it.

Should You Remove Your Spouse as Your Beneficiary?

If your ex-spouse is named as the beneficiary of your life insurance policy, you can change your beneficiary to someone else without any problems if that is what you wish to do. All you have to do is contact your life insurance company and fill out a form to change the beneficiary. But if you owe alimony or child support, you may be ordered to keep your ex as your beneficiary.

What If You Took a Policy Out on Your Ex?

If you took out a life insurance policy on your ex-spouse and you are named as a beneficiary, you should speak to your attorney about your options. During the divorce proceedings, you might be able to request to keep your life insurance policy in order to protect yourself against loss of alimony or child support payments if something happens to your ex. In some instances, the court can require you to take out a policy on yourself as part of the spousal support agreement.

Looking For A Policy?

Just because you are going through a divorce, doesn’t mean that you shouldn’t have life insurance to protect the financial future of your dependents or business – you might simply have to look for a new policy that better suits your needs. There are many different kinds of life insurance policies to choose from, including whole life insurance, term life insurance, and final expense insurance, so if you’re not sure where to begin, consider using online tools, or speaking with an agent. The right policy for you is out there!

We have provided the top insurance companies that offer life insurance policies below; each can give you hassle-free assistance and the most competitive rates in the nation. 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.

Don’t Just Let Your Policy Renew, Review It First!

More than likely, you have a bunch of contracts that you allow to renew each year, like your cell phone bill, car insurance, internet, etc. and you don’t even think twice about it. Sometimes it’s just easier to allow things to renew without reviewing them, or maybe you just simply forget about reviewing all of these contracts before they renew. This might be especially true for your life insurance policy: odds are you’ve probably only reviewed it once or twice within the first year or two of having it. But as your life changes, there may be times when your financial needs change, so it is recommended that you review your life insurance policy on an annual or biannual basis to see if any of the following changes are going to impact your policy in any way.

Administrative Changes You Might Need To Make

Take a look at your life insurance policy and check if there are any administrative changes that need to be made to it, such as:

moving boxes on a dolley — *Make sure that your address is up to date on your life insurance policy before it renews.*

Address or contact information changes

Have you recently moved, or have you changed your phone number or email address? It’s important to make sure that all of that information is up-to-date, so your life insurance company has a way to contact you in case there’s any change in your policy, and so that you receive your bill without any issues. If you forget to make these changes and a bill goes to your old address or you get notifications on your old cell phone number, you risk your life insurance policy lapsing.

Bank account changes

If you are like most people, you pay your bills on autopay linked to your bank account. If you forget to update this information, your premiums will not get paid, and your policy will lapse.

Change of beneficiary

When you first purchase your life insurance policy, you will have to choose a beneficiary to receive your death benefit in the event of your passing. Sometimes things change: for example, if you and your spouse get divorced, you will want to change your life insurance beneficiary to your children or someone else, to ensure that the proper person receives your death benefit.

Policy Changes You Might Need To Make

When it comes to your policy, you might decide at some point that you need more coverage or less coverage. The life changes that could trigger a change include:

Change in income

Whether you have an increase in your income or a decrease in your income, it is important to take a look at your life insurance policy and make sure that it is still affordable, works for you, and will provide enough coverage for your family. If you do get a raise in your income, your expenses will likely go up as well, so you’ll need to make sure that your coverage will meet these added expenses when you pass.

Having children

If you grow your family, you will have more financial responsibilities and should consider increasing your coverage to provide financial stability for your child as they grow, especially if you want to help with college when they are older.

Health improvements

If you bought a life insurance policy when your health was not at its greatest, your rates could be high because of your health conditions. But if your health gets better over time, you can save money on your monthly premiums by providing proof of these improvements. For example, if you were a smoker when you first bought your policy, but later quit smoking, and keep it up for 6 months to a year, you can provide this information to your life insurance company and start saving money.

Your health is going downhill

On the other hand, if your health takes a turn for the worse, you should also consider reviewing your life insurance policy. Declining health will not raise your life insurance policy rates, because once you purchase a policy, your rates are locked in. But if your health begins to deteriorate, you might want to add riders onto your policy, such as a terminal illness rider, or you might want to increase your death benefit coverage.

Reviewing your life insurance policy before it renews automatically can help you save money and ensure that your family is properly covered in the event that you are no longer around. Once you review your policy, and you come to the conclusion that you need more coverage, or would like to convert from a term life insurance policy to a permanent life insurance policy, it is important to begin researching plans to find the right one for you.

The best way to understand how life insurance works, and find the right 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.