Life Insurance Beneficiaries 101

Life Insurance Beneficiaries 101

Beneficiary and Life Insurance Greenwood Village COHere is a quick guide to understand your life insurance beneficiary.         

You’re likely already familiar with life insurance. You already know that these types of policies provide a benefit to someone’s loved ones after he or she passes away, making it easier for them to adjust to life without that individual’s income, cover funeral expenses, and stay on track towards financial goals.

Do you know exactly how life insurance benefits are distributed, though? So you can best understand how your life insurance policy can protect your loved ones, here is a closer look at life insurance beneficiaries.

  • Naming A Beneficiary: When you purchase a life insurance policy, you will be asked to name a beneficiary. The beneficiary is the person to whom your life insurance benefit will be paid out. You can name just one, called a primary beneficiary, or you can name multiple beneficiaries.
  • Giving Your Benefit To Children: You can’t name a child as a beneficiary. If you would like to give your life insurance benefit to your children who are still minors, you will need to either create a trust in that child’s name to be turned over to him or her once adulthood is reached or name an adult custodian of the funds.
  • Changing A Beneficiary: Whether you had a child, got married, got divorced, or underwent another major life change, there could be a time when you want to change your beneficiary. Fortunately, you can! Contact your insurer directly to change the beneficiary or beneficiaries listed on your life insurance policy.

Would you like to learn more about the best way to name your beneficiaries and protect your family? Contact Employee Benefit Plans Inc. for all of your life insurance needs in Greenwood Village and the neighboring Colorado cities. Our staff of expert agents can provide you with the right policy so that your beneficiaries can be protected well beyond your lifetime.