Choosing a life insurance beneficiary is just as important as choosing a policy. By designating a beneficiary, you can earmark who you want to help with financial support upon your demise. Life benefits can go a long way towards helping loved ones carry on in the event of your untimely death. The following tips from Alcorn Insurance Agency in Centralia, IL offer sound advice on selecting a beneficiary for your life policy.
Consider All Options
Before choosing a beneficiary, consider all options. This includes family, friends, business associates, and favorite charities. If you’re married and have children, you’ll probably choose your immediate family as beneficiaries, so they’ll be provided for after you’re gone. This is especially important if you’re the major breadwinner of the family.
If your spouse and kids have financial support, consider the needs of other loved ones who could greatly benefit from ongoing help when you pass on.
Choose a Beneficiary
In the event your primary beneficiary, the individual(s) you’ve chosen to receive your life benefits, passes on before you do, your contingent beneficiary will automatically receive the benefits upon your demise. This saves you the time and trouble of having to come up with another beneficiary from scratch.
Review Your Policy and Beneficiary Choice Periodically
Review your policy periodically along with your choice of beneficiary to ensure you’ve got it right. As circumstances in your life change, you may decide to update your beneficiary choice(s). If, for example, you purchased your policy as a single and designated a younger sibling as beneficiary, you’ll probably want to change that choice after getting married. There’s nothing wrong with updating this information to align with your current needs and desires.
To learn more about life insurance coverage, benefits and costs, contact an agent from Alcorn Insurance Agency in Centralia, IL.