Of course, there is a big question to be answered: who will you choose as your beneficiary? Many people know the answer to this question, while others have to think about their options before making a final selection.
At some point, you will have to consult with your life insurance agent to determine the beneficiary. Not doing this could come back to cause your family trouble in the future.
While most people name an individual (or multiple people) as the beneficiary, this is not your only option. You can leave your life insurance benefit to the following:
- A trust
- Your estate
- A charity
Only you know if one of these options is something you want to consider.
Making a Decision
Choosing a beneficiary is a personal decision that may take some time. Most people who are married name their spouse the beneficiary, however, this is not a given. Others, for example, choose a child.
Here are some questions that can help you make a decision:
- Who will need the money the most when you pass on?
- Are there people who rely on you for financial support, such as a spouse and/or children?
- Would you rather leave your money to a charity that you care about?
You can make a Change
Just because you choose a beneficiary when you purchase life insurance does not mean you are stuck with this decision. You can make a change down the road if you so desire.
For example, if you divorce your spouse it is likely you will want to remove this person as the beneficiary. The same holds true if your spouse passes on before you. In this case, many people switch the beneficiary to a child or children.
It is not always as easy as it sounds to choose a life insurance beneficiary. If you have any questions or concerns, we are here to clear the air and put your mind at ease. Contact us to setup a consultation.