Choosing a Beneficiary for Your Life Insurance Policy

Planning for the end of life is no easy task, but it can go considerably more smoothly once you have a good beneficiary in mind. To clarify, your beneficiary is the person (or group or entity) who will be receiving the payout from your life insurance policy. 

Sometimes it can be tough knowing who to select as a beneficiary, but at Benefit Insurance Services we’re here to help. We connect people all across the Myrtle Beach, SC area and beyond with quality life insurance policies to provide some comfort in life’s most difficult moments. 

And when it comes to beneficiaries, we’ve seen it all.  Now, most people choose a close family member (such as a spouse, child or even sibling) as their beneficiary, but things aren’t always so cut and dry. If you’re having difficulty deciding who your beneficiary should be, here are some points you should be thinking about: 

  • Find out if there are any restrictions that may prevent all of the money going to the person or entity you choose. 
  • Who will need financial support once you are gone? 
  • Who will respect your final wishes? 
  • If you have children, consider establishing trust so they can receive a gradual, more restricted payout that will still take care of their needs. 
  • If you don’t want to choose a person, is there a charity or other group you care deeply about that could benefit? 

Now, it’s worth pointing out that if no beneficiary is named or your beneficiary is deceased (a good reason to regularly review your policy and update it as needed), your life insurance payout will become part of your estate. It will then be distributed with your assets according to your will, or if there is no valid will, the state will evaluate your assets and most likely give it to your closest living relative. 

So needless to say, you’ll want to choose a beneficiary ahead of time if you don’t want that to happen. You should also name a contingent (a backup) beneficiary just in case. 

Whether you’re ready to take the next step and secure a good life insurance policy or you simply want to change the beneficiary on an existing policy, give us a call or come visit the Benefit Insurance Services offices in Myrtle Beach, SC.