Beneficiaries to life insurance policies and beneficiaries unclaimed life insurance

Choosing Beneficiaries to life insurance Policies carefully!

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Trying to make a decision about beneficiaries to life insurance Policies or how to properly set up your life insurance policy?

What is a beneficiary?

A life insurance beneficiary is a person or entity that is named to receive the proceeds from a life insurance policy upon the insured’s death.

In most situations this is the spouse, children or family members of an individual but it can also be a company or a business partner as well.

The insured’s estate can also be made the beneficiary. This money will then be sent into probate court and may not be awarded as you would like.

Who?

It is best to choose someone whom you trust as a beneficiary. If you have special request ask them to allocate funds in a specific way such as splitting it up among younger children. (Children under 16 cannot be awarded life insurance funds outside of probate court)

If possible always get everything in writing to avoid family disputes. Set up a will or trust while you’re at it as well.

Why?

If you die it is unlikely that you will leave behind zero expenses to your family.

Most individuals find it wise to protect their loved ones by providing some money to cover bills and debts.

These expenses could include mortgages, car payments, credit card debt, school loans, retirement, and a child’s education, just to name a few. Why Life insurance is important.

You may also consider that often the loved ones left behind may suffer some depression and find it difficult to work or hold a job. Depression among survivors is quite common.

When should you choose a beneficiary?

As soon as possible, you should secure a life insurance policy and make a responsible person, over the age of 16 the beneficiary to that policy.

If under the age of 16 the proceeds will go into probate court and they decide who your life insurance proceeds will be awarded to. In addition to this probate court is very inefficient and often consumes up to half of the life insurance face amount. (I think they do this on purpose)

The primary beneficiary is the 1st person that the life insurance funds will be given to. If that person dies before you do, then the life insurance proceeds will be awarded to the contingent beneficiary.

You can also split the face amount equally between as many beneficiaries as the life insurance contract allows.

For most life insurance policies the beneficiary number is between a 2 and 4 person maximum.

You can split the money up any way you like as long as the total number equals 100%. For example: you could give your son John 20% while giving Jane 50% and Margaret 30%.

Designation of Beneficiaries to Life Insurance Policies:

It is important to keep your policy beneficiary information up to date. If there has been a divorce, a death, or any other life event that could affect the benefit proceeds you will want to update you policy.

Changes to Beneficiaries to Life Insurance Policies:

You can make changes to your beneficiaries at any time and for any reason. This must usually be done in writing and sent or faxed to the life insurance company. Often, the company will have a specific form that you will need to use. You should get a return letter confirming the changes made. These forms can be found by contacting your local agent or the life insurance company itself.

It may be a good idea to tell your loved ones about these changes to avoid disputes in the event of your death. You don’t want your ex-spouse fighting over the life insurance proceeds when she was moved off the beneficiary list years ago.

Disputes regarding Beneficiaries to Life Insurance Policies:

The life insurance company will not get involved if several people are fighting over the same life insurance benefit amount. The insurance company will award the proceeds to the beneficiary listed on the life insurance policy. Changes from these rules would only occur if fraud involving the beneficiaries to life insurance policies language exists.

Summary:

Setting up a life insurance policy should take a bit more time than buying a cheeseburger from McDonalds.

It just makes good business sense to spend a small amount of time to investigate the life insurance basics instead of just finding the best life quotes you can and pulling the trigger.

A couple hours should be a reasonable amount of time to learn what you need.

Spend some time on this subject and learn; then search for affordable term life insurance information or any other life insurance policy that you might need.

When you are satisfied that you know enough to shop, compare insurance life rate term to whole life insurance policies and choose what is best for you.

I would advise you to choose level term life insurance rates so that your rates will not increase with each passing year.

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• Cheap insurance life rate term – Cheap Life Insurance Online
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