If you’ve decided to purchase a life insurance policy, choosing those that will get the proceeds of your policy is an integral part of the process because you can’t change your beneficiaries after you’re gone. So how can you choose the right beneficiary?
What Is A Beneficiary?
A beneficiary is someone who will get the payout of your life insurance policy if you die. Beneficiaries are loved ones –children, spouses, parents, or siblings. They are often people who depend on you and your income. The proceeds from the life insurance payout can help cover their financial needs.
Who Should You Name As A Beneficiary?
Your circumstances will determine whom you should name as a beneficiary. While some may choose a spouse or charity as a named beneficiary, others may name a child or a parent. Keep in mind that children under 18 or 21 years will not be able to receive the funds, as they will need a trust or a guardian. Therefore, you will need to talk to an attorney if you will be setting up a trust.
Can I Change My Life Insurance Beneficiaries?
Yes. You can change your beneficiary. Contact your insurer to update your beneficiaries. Regardless, always ensure your beneficiary is up-to-date.
If you need help naming beneficiaries when getting a life insurance policy, call an insurance agent who can guide you through the process.