When you secure life insurance coverage, part of the process is deciding who will receive a payout in the event of your death. While this might seem like an easy decision, there are some things you need to consider before making your choice.
Here are some of the things that you need to take into account when selecting your life insurance beneficiary.
Depending on the state you live in, there may be rules regarding who you can name as your beneficiary. If you live in a community property state your spouse may be able to claim your benefit no matter who is named on your policy. State laws might affect whom you select as your life insurance beneficiaries. Make sure you understand your state’s guidelines before making a decision.
Consider Everyone and Everything You Want to Provide For
You obviously want to take care of your spouse and children but it’s important to think about others who might need support. For instance, you might also want to make provision for your elderly parents, siblings, or other loved ones. Additionally, you might want to allocate some of your death benefit for your business. Make these decisions now, so you know exactly who to name on your policy.
Listing a Minor
If you want to list a minor as your beneficiary, it’s important that you also specify this in your will. This is because your life insurance benefit might be contested in court. At this point, the judge will likely refer to your final will and testament to decide who will receive your payout. So, to protect your minor’s rights, make sure you take this extra step.
These are some of the things to consider when choosing your life insurance beneficiary. Are you looking for further assistance with your life insurance coverage? If so, don’t hesitate to contact the experts at John Scott Insurance. We are ready to get you covered today.