You are required to name at least 1 primary beneficiary. Most of the time, you choose your spouse or an immediate family member. This is usually the person who you will entrust your children to if you have any. However, what happens if your primary beneficiary is no longer available? What if you name your spouse and you both die at the same time? Who gets your death benefit?
This is the advantage of having a contingent beneficiary. You can avoid the benefit being tied up in a complicated process before your loved ones can use it.
2. Make sure the details are complete and correct
You can name anyone as a beneficiary. Your spouse, children, siblings, parents, friends, or even a trust. You can even name more than one beneficiary. For multiple beneficiaries, you will need to designate a percentage each will receive. Make sure all information for each beneficiary is complete and correct. The following information will be needed:
- Full Name
- Contact Details
- Relationship to Insured Party
- Amount or Percentage to be Received
3. Avoid naming a minor as beneficiary
Minors can not be issued a check by the insurers. The process will be very complicated before your minor beneficiaries can receive the benefit.
4. Inform your beneficiaries
Make sure you tell your beneficiary that you have chosen them. Make them aware of the terms of your policy.
5. Update your list
Any change in details for any of your beneficiaries should be updated. You may experience a life changing event like loss of a loved one who might be a beneficiary. You will need to replace them from your list in this case.
6. Consider government assistance
Having a beneficiary who is receiving a government assistance may be disqualified for their assistance when they receive your benefit. Check if your beneficiaries will be affected by this.
You can avoid many complications for your beneficiaries if you do it correctly. This makes dealing with their loss of you much easier. Ensure you are able to care for them even when you are gone. At Roper Insurance Services, we aim to provide comprehensive insurance policies that makes your life easier. You can get more information about our products and services by calling our agency at (828) 697-6709. Get your free quote today by CLICKING HERE.