A very important decision that goes along with choosing a good life insurance policy may be naming beneficiaries. One of the people you name to be your beneficiary for life insurance may be the same one who sees to it that your last wishes in the order you want them are handled properly and the way you intended them to be. This person might be in charge of overseeing the final expenses of your life, paying off old debts or securing your mortgage note. Whoever you decide to be your beneficiary for life insurance should ideally be honest and accountable. To learn more, read the article “Term Life Insurance: Preparing for Declaring Your Beneficiary.”
There are Different Types of Beneficiaries for Life Insurance:
A beneficiary for life insurance should be chosen after the policy owner is sure that they have found a person of good character.
- Revocable Beneficiary is generally a person that is named by the owner of the life insurance policy. Once this person is named, the owner of the life insurance policy may be able to change to another beneficiary at their discretion.
- Irrevocable Beneficiary is a person that is typically named by the owner of the life insurance policy. The owner of the life insurance policy may not usually change to another beneficiary unless they have the permission of the first.
- Contingent Beneficiary is a person that is named as the beneficiary only if the primary beneficiary is to pass away at any time before the owner of the life insurance policy.
- Estate named as Beneficiary may not be something that is generally advisable in all circumstances but the owner of the policy can name their estate as the beneficiary to their life insurance policy.
Naming Minors as the Beneficiary on a Life Insurance Policy
It could happen that the owner of a life insurance policy names their child or children to be their beneficiary(ies) for life insurance. If this is the case, it could be a good idea to have an adult that can be held accountable for money transactions. Go here to read more about family life insurance.
When the time arrives to choose life insurance coverage and to name a beneficiary to that coverage, you may want to work with an agent or get free quotes online to help be sure that you are getting the best coverage for you and your beneficiaries.