What you need to know about choosing a life insurance beneficiary.
Life insurance is an important component in planning for your family’s future. Investing in a policy, whether it’s a whole life or a term policy, can help to give your loved ones the fiscal support that they might need at some point in the future. However, when it comes to your insurance, you need to designate a beneficiary. While designating who you want the policy to benefit may seem easy enough, there are factors that require careful thought. Here’s what you need to know about designating a beneficiary for your life insurance policy.
Know Who You Can Designate:
When it comes to choosing your beneficiary, it’s important to know who you can designate as your beneficiary. Not only can you designate your family, but you’re also able to designate charities, trusts, and your estate. However, do be aware of laws imposed by your state. Keep in mind that in certain states, you’re unable to designate anyone other than your spouse as a beneficiary. We recommend that you meet with your trusted insurance agent to help you choose the right course of action. Give us a call at Randy Jones Insurance – we are very familiar with life insurance and can advise you properly for your family’s needs.
Determine Who Would Benefit Most From Your Policy:
When choosing who your beneficiary should be, think about who would need the money most. From your kids to your favorite charity, determine who you want the policy pay out to go to. Additionally, keep in mind that often times you can designate more than one beneficiary. It can sometimes be important to designate more than one beneficiary depending on your family situation. That way if something happens to one of the beneficiaries, the other still has the opportunity to benefit from the policy.
Be Specific When Designating Beneficiaries:
When it comes to listing your beneficiaries on your policy, the more specific, the better. Listing generalities like ‘my spouse’ or ‘my kids’ can create unnecessary confusion for family members at a trying time. When listing beneficiaries, list the full name of the person you intend to designate along with any other pertinent information such as birthdays, contact information, or social security numbers. That way you’re loved ones are better able to claim the policy benefits.
To ensure that you properly designate your beneficiary for your life insurance policies, give us a call at Randy Jones Insurance Services to get experienced, knowledgeable guidance regarding life insurance. Contact us at Randy Jones Insurance Services in Pleasanton, California for assistance.