Designating the right beneficiary is vital to owning life insurance policies and similar financial instruments. You’ll want to make sure that death benefits go to the proper person following your passing. The professionals at Amy Tounget Insurance Agency LLC, service residents in Midlothian, TX, can help you select a policy that fits your needs and the paperwork necessary to ensure beneficiary designation.
What is a Beneficiary?
At its simplest, a beneficiary is the person or persons you designate to receive the proceeds of your life insurance policy or its assets upon your death. You can name more than one beneficiary, including a primary and contingent beneficiary, in case the primary individual passes away before you do. Life insurance policies allow you to change named beneficiaries if circumstances change. If you don’t name a beneficiary, the proceeds become part of your estate, and a judge can decide who will receive the proceeds.
Who Should I Choose as My Beneficiary?
Most people choose their spouses, but in lieu of that, you can name an adult child, another trusted family member, or anyone you wish. Most estate experts recommend not naming a minor child as a beneficiary, as someone else must administer the funds if you die before the child becomes an adult. However, you can place your life insurance policy in a trust to protect the proceeds until your child becomes an adult.
Other considerations for naming beneficiaries include
- The beneficiary’s age
- Whether receiving the benefits will disqualify your beneficiary from receiving other benefits
- Ensuring that your will is in line with beneficiary designations
- The ability of the beneficiary to manage money
Selecting Your Life Insurance Policy
You have many options when selecting life insurance in Midlothian, TX. Amy Tounget Insurance Agency LLC can help you with the process, as well as naming beneficiaries.
