Choosing The Right Person To Entrust Your Future Finances With
You are on the right track with your life insurance policy in hand but have you made a mistake choosing the wrong beneficiary? Despite common neglect, your life insurance beneficiary is almost as important as the policy itself. As important of a decision as this is, we felt it was necessary to gather all the must-know information:
- A life insurance beneficiary is an individual or entity that will receive your life insurance policy's death benefit once you pass. You can have both a primary beneficiary and a contingent beneficiary, as this accounts for the possibility that your primary beneficiary does not outlive you.
- If you do not specify a life insurance beneficiary to your policy, you will typically get what is known as a default beneficiary, meaning your estate.
- When choosing a life insurance beneficiary, you will want to choose someone who is responsible and does not have any ulterior motives. If you have multiple children that will likely fight over your death benefit once you pass, it is best to clearly identify what percentage of your assets goes to each individual to avoid family turmoil.
- Often, policyholders choose to change their beneficiary for a variety of reasons. It is extremely wise to schedule a recurring appointment for an annual policy review with your insurer as this will give you the opportunity to change your beneficiary as your circumstances change. If you experience a major life event such as marriage or divorce, it is important that you meet with your life insurance agent sooner rather than later.
Serving Redlands, Beaumont, Banning, Calimesa, and all of California, contact Little & Sons Insurance Group for all of your life insurance needs. We will be your guiding hand in choosing the perfect life insurance policy based on your unique needs. By evaluating your current and future needs, we can help you choose between a term life insurance policy and a whole life insurance policy.
