Who Can Be a Life Insurance Beneficiary?  

Life insurance is a crucial economic tool that can help provide financial security for your loved ones in the event of your passing.

Designating beneficiaries is one of the most important decisions when purchasing a life insurance policy.

Designating Life Insurance Beneficiaries

When you purchase a life insurance policy, the insurer will ask you to designate beneficiaries. These people can file a claim for the policy’s death benefit if it is in force when they die.

You can typically designate more than one beneficiary and indicate what percentage of the death benefit each should receive.

When you designate beneficiaries, you should give them the name of the life insurance company so they know how to apply for the death benefit after you die. Without this information, the benefit could go unclaimed.

One of the most common choices for life insurance beneficiaries is a spouse or partner. You can also designate other family members, such as parents or siblings, as beneficiaries of your life insurance policy. This can be particularly important if your dependents or family members rely on your financial support.

By naming specific family members as beneficiaries, you can help ensure they are provided for in the event of your passing.

Designating a Trust as Beneficiary

Some people choose to designate a trust as the beneficiary of their life insurance policy. This allows for more control over how the proceeds are distributed and can provide additional asset protection. By naming a trust as the beneficiary, you can specify how the funds should be used and ensure they are managed according to your wishes.

Designating Charitable Organizations as Beneficiary

You can also name charitable organizations as beneficiaries of a life insurance policy, which allows you to support causes you are passionate about even after you are gone.

What Happens if You Don’t Designate a Life Insurance Beneficiary?

If you do not designate a specific beneficiary, or if the beneficiary dies before you and you don’t choose another, the proceeds of your life insurance policy will typically be paid to your estate to be distributed according to your will or state intestacy laws. This can lead to delays in distributing the funds and additional probate expenses.

Contact Us

Contact McCartan Insurance Group in West Des Moines, Iowa, to learn about your life insurance options and get a quote.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.