Newburgh Office: 812-490-9980
             Boonville Office: 812-897-1752

info@cigcares.com

Take care when naming
your life insurance beneficiary

By

couple-holding-hands-at-table
Communicate with your loved ones about your life insurance beneficiaries and arrangements.

Purchasing a life insurance policy is an important piece of financial planning. Naming a beneficiary, and changing that beneficiary when necessary, is also a key component of insurance planning. Keep these tips in mind when naming a life insurance beneficiary:

Spouse’s name  ̶  When listing a spouse as beneficiary, be sure to show a woman’s name as “Jane Doe” and not “Mrs. John Doe,” so that there is no question of the proper beneficiary in the event of divorce and remarriage. Be clear by listing full first, middle and last names without courtesy titles.

Divorce  ̶  Be sure to review beneficiary designations at the time of divorce. Many states automatically revoke the beneficiary designation of a spouse upon divorce, so it is important to review your beneficiary designations and discuss them with an attorney if you need assistance.

Minors  ̶  Life insurance companies generally cannot pay the proceeds directly to minors. If you have minor children, alternatives include setting up a trust for their benefit or naming a custodian under the Uniform Transfers to Minors Act, rather than listing them as a life insurance beneficiary. An attorney can help with either of these options.

Contingent beneficiary  ̶  It is always helpful to name a contingent beneficiary on a life insurance policy. If the primary beneficiary dies and you neglect to name a replacement, the insurance company can still pay policy proceeds to the contingent beneficiary. Without a contingent beneficiary, the proceeds are paid to your estate, and it will take longer for family members to receive policy proceeds.

Communicate  ̶  Finally, be sure to tell your beneficiaries about the life insurance policy. Let them know where it is and how to find it, so that they can act promptly to claim benefits at the necessary time. Provide the name and contact information for the agent or agency where you bought the policy. Your family will appreciate your thoughtfulness.

Coping with the loss of a loved one is difficult for everyone. By planning ahead, you can make things just a little easier for your family.

Posted 11:04 AM  View Comments

Share |


No Comments


Post a Comment
Name
Required
E-Mail
Required (Not Displayed)
Comment
Required


All comments are moderated and stripped of HTML.
Submission Validation
Required
CAPTCHA
Change the CAPTCHA codeSpeak the CAPTCHA code
 
Enter the Validation Code from above.
NOTICE: This blog and website are made available by the publisher for educational and informational purposes only. It is not be used as a substitute for competent insurance, legal, or tax advice from a licensed professional in your state. By using this blog site you understand that there is no broker client relationship between you and the blog and website publisher.
Blog Archive


View Mobile Version
Commerce Insurance Group Locations
Home Customer Service Business Report a Claim Our Carriers Contact Us Blog RSS Feed Insurance Website Builder Personal Twitter CIG Blog RSS Feed Facebook Commerce Twitter