You’ve taken a step in protecting your loved ones by purchasing a Camden County NJ Life Insurance policy; however, now you’re left with an important question: How do I choose a beneficiary? Though you might think that this is a no-brainer, there are nuances to choosing a beneficiary that are more complicated than initially assumed. With that being said, here are common questions to ask when choosing a beneficiary on your life insurance policy.
Have I reviewed my Life Insurance policy in the last two years?
Review your life insurance policy after life events or every other year. Our lives are in a constant state of flux, and major events, such as divorce or a familial death, will bring the need to change your policy beneficiaries. This will ensure that your intended beneficiaries receive the payout they are due.
Is my policy specific?
It is important to specify who will be the recipient of your policy’s payout. Providing Social Security numbers and addresses will get the payout much quicker to your beneficiaries because the insurance company will not have to search for them. Make sure to be specific about how you want the payout divided—whether it’d be an equal amount for each beneficiary or distributed as a percentage.
Are my beneficiaries up-to-date?
As you consider changing your beneficiary, as a policy owner, you have the right to change your life insurance at any time. However, there are common mistakes you ought to avoid, such as naming a minor or your estate as a beneficiary. Ensure that your insurance payout is given to a trusted adult or legal guardian in the event you have a minor. In the event that you name your estate as a beneficiary, expect to go through a legal validation process that can take months or even several years.
At Connell Insurance Agency, we understand the importance of protecting your family, your property, and your assets. To learn more about our various life insurance policies, contact our knowledgeable specialists today at (888) 590-0715.