Who You Can Name as a Life Insurance Beneficiary

Life insurance is something people may put off until a later date because of the nature of this type of coverage. It is important to take responsibility and consider who will be the beneficiaries of your policy. There are several parties that you may choose as beneficiaries whether you have family or primarily live alone. Researching the possibilities can help you make better plans for the future and protect loved ones from sudden loss while ensuring your assets go to the appropriate beneficiaries.

Family

The most common beneficiaries are usually family members. Family members who are dependent on you for financial support can suffer hardship if they are not named in your policy. You will need to decide who is the primary beneficiary and can add contingent members as well. Many people will choose spouses, but any family member can be named as the primary or contingent beneficiary. 

Estate

You can name the administrator of your estate as a beneficiary. A will must be drawn up beforehand and the estate beneficiary must be approved by the probate court. This can be a long process and is not always the first choice of beneficiary. However, there can be advantages to this type of beneficiary. More complex distribution of assets and funds can be arranged with this type of beneficiary. 

Other Beneficiaries

Some other beneficiaries include charities which can be the primary or contingent beneficiary, trusts, and key persons which allows business owners to name co-owners as beneficiaries. There are not many restrictions aside from naming minors on who can be a beneficiary or not.

Call or stop into Asset Planning Insurance Agency LLC of Johnstown, PA to schedule an appointment with one of our courteous representatives. We will be happy to assist you in choosing the right life insurance policy and naming the beneficiaries who are most important to you.