10 Ways to Choose the Perfect Life Insurance Beneficiary

When you purchase life insurance, your beneficiaries will receive a death benefit if you die. But how do you choose the right beneficiary? Picking the wrong one can result in life insurance funds being distributed to someone who doesn’t need them, which could cause stress and complications for your family members and loved ones after your death. Follow these 10 tips to choose the perfect life insurance beneficiary.

Step 1 – Get life insurance

When choosing a beneficiary, it is important to first have your life insured. If you do not currently have insurance, contact your current insurer and request a quote. Make sure you shop around for rates from different companies. Once you have chosen a provider, don’t forget to review your policy annually.

Step 2 – Keep it up-to-date

As your life changes (your spouse gets a new job, you have a child, etc.), so should your beneficiary designations. For many companies, changing a beneficiary designation is simple; it involves little more than filling out a form and mailing it in. Most financial institutions provide an online method of changing beneficiaries as well. Check with your institution for more information on how to change or update beneficiary designations on retirement accounts and life insurance policies. You should also review existing beneficiary designations every five years or so.

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