Choosing The Right Life Insurance Beneficiary

Family life insurance and policyBeneficiaries Explained

When you invest in a life insurance policy, you are helping to plan for a secure financial future for your loved ones. When you open a policy, you will have the opportunity to choose a beneficiary who will receive the financial payout, or death benefit, from the policy. Keep this guide in mind to make sure that you choose the right beneficiary for your needs.

There are two types of beneficiaries that you should set up with your life insurance policy, both a primary and contingent beneficiary. If your primary beneficiary is still alive when you pass away, they will receive the death benefit. However, if your primary beneficiary passes away before you, the death benefit will then be passed onto your contingent beneficiary.

You should also consider if you should set up a revocable and irrevocable beneficiary. If you set up a revocable beneficiary, you can change who is named the beneficiary of your policy at any point during your life. If you choose an irrevocable beneficiary, you can only change your beneficiary with their consent. While it may not seem like a big deal to choose an irrevocable beneficiary, keep in mind that messy family issues and divorces can lead to confusing beneficiary matters. Choosing a revocable beneficiary should always be your first choice, unless you have a compelling reason to choose an irrevocable beneficiary. Working closely with your insurance agent will help to make the process of choosing the right life insurance beneficiary much easier.

For all of your life insurance needs, contact the insurance professionals at Desert Empire Insurance in Palm Desert, California.  As an independent insurance agency, we will work with you to ensure that you have the coverage that you deserve, all at the right price to fit your budget.