Making Tough Life Insurance Decisions
Choosing your life insurance beneficiary is an important decision. Here are some tips in order to help you avoid some common mistakes.
- Remember the Purpose of the Policy: The reason you are buying the policy should be your drive in life. If you want to help your family financially, then your spouse can be a great choice. If you’re going to help your company, then choose your business partner.
- Know Your Options: There are usually more options than just your kid or your spouse. An agent at Singh Insurance and Financial Services, LLC can help explain your options.
- Have a Back-Up Choice: If your primary beneficiary can’t be found or is deceased when you die, then a secondary beneficiary should become the recipient. Make sure you think about this choice as well.
- Keep It Up to Date: A common oversight is not keeping your beneficiary up to date. If you are married and previously listed your mother, your spouse won’t receive money to help with your household.
- Avoid Having a Minor Be Your Beneficiary: It’s best to set up a trust or designate an adult you trust to distribute the money to a minor to avoid any lengthy processes.
- Be Specific: It’s best to be as specific as possible when choosing. If you name your children and one of your kids dies before you do, do you want the remaining children to get the money, or do you want your deceased kid’s heirs to get some of the shares?
If you don’t name a beneficiary, then the life insurance policy is paid to your estate. If this happens, then the court decides how to handle the funds. This can be a lengthy process and can chip away at some of the funds. If you want the money in the hands of those who need it, always designate a beneficiary.
Contact Singh Insurance and Financial Services, LLC to get a quote on life insurance in Orlando, Tampa, and anywhere in the state of Florida.