Nov 09
When naming your life insurance beneficiary…
Your life insurance policy is designed to be a critical safety net for the ones you love, so when naming a beneficiary to your term life insurance policy, it’s important to follow a few conditions in order to ensure their protection – especially because they probably depend on you for financial support.
Following are three factors to consider when naming your life insurance beneficiary:
- It’s important to name a “contingent,” also known as a secondary beneficiary. This will ensure that someone receives the death benefit if you outlive the first beneficiary.
- Name a specific beneficiary, rather than having all of the proceeds paid directly to your estate. By naming a specific family member, such as a spouse or child, the proceeds will be paid to them immediately. If the proceeds are made payable to your estate, they will have to go through probate with the rest of your assets.
- Be extremely specific when naming your life insurance beneficiary. For example, saying “wife of the insured” could be confused for an ex-wife, resulting in her receiving the proceeds instead of your current spouse. To prevent this from happening, it’s important to change the beneficiary designation on your policy. It’s a quick an easy process.
If you have questions about naming a beneficiary to your life insurance policy and what steps you need to take, contact an experienced life insurance agent at AccuQuote. They’ll help you through the process and make sure you leave your loved ones with an adequate amount of protection. Remember, AccuQuote provides free life insurance quotes and can help you save on your term life insurance cost.
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November 9th, 2009 at 6:20 pm
Naming a contingent is very important, especially for those getting life insurance when they’re younger. If you outlive your beneficiary, will you remember to update your life insurance 15 years from now?