1. Make Sure Your Beneficiaries are Current.
I received a call from a client recently concerning her mother-in-law
Who had passed. The primary beneficiary pre deceased the insured.
No contingent beneficiary was named therefore this held up claim
Payment.
Policy-owners can name anyone as a beneficiary, from their spouse,
Or ex-spouse, to children, siblings, parents, business partners,
A charitable organization or a trust.
Policy-owners may also designate a contingent beneficiary.
This person or entity is a secondary recipient of the life insurance
Policy payout.
The contingent beneficiary will receive the death benefit if the primary
Beneficiary dies or cannot be found before the policy pays out.
Beneficiary designations need to be very clear and follow the
Requirements of the life insurance policy.
2. Do Not Name a Minor.
When an insured lists a minor as a beneficiary, a life insurance claim
May be delayed, because a child who hasn’t reached the age of majority
Cannot receive the proceeds without a guardian.
3. Always Name a Beneficiary.
When no beneficiary is named on the policy, the life insurance proceeds
Will go to the estate or be distributed to the next of kin.
You will receive the full death benefit if you are the sole beneficiary.
If there are multiple beneficiaries, each will get their allocated share.
An improper beneficiary designation or change can lead to beneficiary
Disputes which will cause payout delays.
* Some insurance companies allow you to name the funeral
Home as beneficiary for your convenience. A second beneficiary
Named would receive any remaining proceeds after payment has been
Made to the funeral home.
Contact Me Today!
Hayden Childs
Independent Insurance Agent
(205) 269-1382
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“The Grief is bad enough,
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