10 Ways to Choose the Perfect Life Insurance Beneficiary

Step 9 – Make sure there are no outstanding loans against the policy

A business loan or consumer loan can be paid off with life insurance proceeds, so make sure there are no outstanding loans against your policy. If there are, ask your financial provider how you can pay these off before proceeding. This is also important if you have co-signed on a loan for a child or other family member; you will want to ensure they pay it back if they die while that debt is still outstanding.

Step 10 – Do you want your beneficiaries left with cash or something else?

Cash is king, but not everyone wants it. Determining what a beneficiary will use money for is an important factor in picking them. If your beneficiaries plan on using money for some big project like a down payment on a house or tuition payments, then it makes sense to give them cash and let them decide how best to use it. If they don’t have big plans, you may want to consider gifting them something else.