Choosing a beneficiary is an important step in the life insurance process. Your beneficiary is the person or organization that will receive the benefits of your policy upon your demise. If you’re not sure how to choose a beneficiary, these tips from Flaugh Insurance Agency can help you make wise choices.
Who Needs Your Financial Support Most?
When considering a beneficiary, ask yourself: who needs your financial support? If you’re married and have a family, your spouse and children would be the most appropriate choices for beneficiaries as life benefits can help replace your salary in providing financial support after you’re gone. As the main breadwinner in the family, your wages will be sorely missed by your spouse upon your demise. Life benefits will enable your spouse to pay the bills, care for your children, and continue the lifestyle they’re used to after you’re gone.
If you’re single with no children, you may want to choose your aging parents or younger siblings as beneficiaries, especially if you’re helping them financially now. Life benefits will enable you to continue future support to help with your parents’ retirement or siblings’ college. Singles with no dependents may have a favorite charity in Michigan or community project they want to help with financial support.
One or More Than One Beneficiary?
You can choose multiple beneficiaries and specify how to divide the benefits between them. This gives you an opportunity to help various people after you’re gone.
Establishing a Trust
If you want to leave life benefits to minor children, you can put them in a trust. You’ll have to designate a responsible individual to manage this trust until your children are of age to receive these funds.
For more help in choosing a beneficiary, talk to your Cory Flaugh, your Life Insurance agent at Flaugh Insurance Agency at 269-925-0611 or visit flaugh.com.