Having life insurance in Wyomissing, Sinking Springs, Robesonia, PA, and the surrounding areas is a smart move, but who should be the one to receive those benefits upon your passing? This might seem like an easy decision, but it can also help to talk through your options with your independent insurance agent from Stubbs Insurance Agency. While many beneficiaries tend to be family members, such as surviving spouses, living parents, or even children, your beneficiary could be a trust, a charity, a church, or other entity. Understanding the purpose of your life insurance will definitely help you determine the right beneficiary, and sometimes you may elect to have multiple beneficiaries as well. And while this might be a difficult decision for some, it can complicate things if you do not name a beneficiary for your life insurance. Contact us today to learn more about the importance of having a life insurance beneficiary listed with your policy.
Start With an Insurable Interest Party
When making the list of potential life insurance beneficiaries, a great place to start is with those who have an insurable interest. This means that the beneficiary will incur some kind of loss should the insured person pass away. Often times, this is a spouse or parents, but could also be grandparents, children, siblings, or even business partners. Choosing not to name a beneficiary can make things more complicated and delay payments as things wind through probate.
Often, people end up choosing a primary beneficiary and then a secondary beneficiary in case the primary beneficiary passes before you update your life insurance policy. In the case of you naming a minor child as the beneficiary, a guardian should also be named as someone who can manage the proceeds on behalf of the minor until they turn 18 years of age.
Let The Beneficiary Know of Their Status
Having a conversation about death is usually never a pleasant one, but it is important that the beneficiary of your life insurance be aware of their status. Let them know why you chose them as the beneficiary and what your final wishes are. It is also important to review your policy regularly and ensure that the beneficiaries you had listed earlier are still the appropriate people, or if you desire to change them to other individuals or entities.
Life insurance is an important protection in Wyomissing, Sinking Springs, Robesonia, PA, and the surrounding areas, but it can also be used as a way to benefit charities, organizations, and others. At Stubbs Insurance Agency, we can help you with the decision as to who your beneficiaries should be, along with determining the level of life insurance and other questions. Contact us today to get started with your life insurance needs.