How do you decide on a beneficiary for your estate planning needs? Sometimes, it may be evident. For example, if you are married with children, the most likely candidate would be your spouse. What if you have children from a previous relationship and you are no longer married? If you own and run a business, should you name your business partner as the beneficiary? Determining the best person or organization to receive an insurance payout can be challenging. When you work with your experienced life insurance agent in Mississippi, you will gain insight to help you make the best decision for your situation.
Suggestions for Choosing the Right Beneficiary for Your Life Insurance Policy
Taking methodical steps towards picking a beneficiary can be helpful when the time comes for the insurance payout. It can also leave you feeling at ease, knowing the people you hoped to help will be taken care of. To assist you in your decision-making, here are some suggestions for choosing a beneficiary for your life insurance:
- Start by answering this question, “What is the purpose of this policy?” Are you trying to provide for your spouse and children? Do you have a business that you want to ensure is taken care of? Do you have minor children to be looked after? These are essential questions that to be answered first.
- Consider all your options. Talk with your life insurance agent about your beneficiary options. Maybe you want to split the proceeds between a spouse and adult children, or you want a non-profit to receive the insurance payout.
- Have a Plan B beneficiary. Generally, you want to name a primary beneficiary. It would be best to determine who would be a secondary one if the primary cannot be located, refuses the proceeds, or is dead at the time of your death.
- Keep your beneficiary choice up-to-date. It is easy to go through picking the right beneficiary for your unique situation and then leave things alone. Just as you should review your estate planning each year, you should check your choices regularly and determine if that person still fits your needs.
- Use specific names. Usually, we know to list out everyone by name, but avoid the temptation if you are tempted to list groups like ‘the children.’ Instead, list each child by name.
- Try not to designate minors. Even though you may want your children to benefit from your life insurance policy, you may not want to list them just yet. Specifically, if they are minors, you may wish to establish a trust or designate another adult to oversee the funds. If not, the courts will have to set up a guardianship, which can take much time.
Gain Additional Life Insurance Insight from the Executive Planning Group
Deciding on a beneficiary is no small matter. Gain the help you need to answer your questions when you talk with a life insurance agent from the Executive Planning Group. We will discuss your situation and offer you options, including how to choose your beneficiaries. Contact us today, or feel free to request a quote online.
Call us at 601-982-3000 to begin or revisit your life insurance needs in Mississippi.
Disclaimer: Securities offered through Valmark Securities, Inc. Member FINRA, SIPC. Investment advisory services offered through Valmark Advisers, Inc., an SEC-registered investment advisor. Executive Planning Group is a separate entity from Valmark Securities, Inc. and Valmark Advisers, Inc.