Why You Need to Name a Beneficiary on Your Life Insurance Policy
There are some people who wrongfully assume that they don 't have to name a beneficiary on their life insurance policy because that information is contained in their Will. Don 't fall into this trap. Naming a beneficiary on your life insurance policy is critical for several reasons.
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Three reasons you should name a beneficiary on life insurance
If you don 't name a beneficiary on your life insurance policy, then the proceeds from your life insurance could become part of your estate, in which case the proceeds could be locked up in probate court for a long time before your family sees the cash.
Secondly, life insurance proceeds could pass to your next of kin, even an ex-spouse. While you may want your spouse to receive your life insurance benefits upon your death, the question then becomes what happens if you and your spouse die together?
Finally: Naming a primary and secondary beneficiary, which is recommended and allowed in most states helps you plan for contingencies. This guarantees that your final wishes as to whom should receive these benefits is carried out, even if the unexpected happens.
Naming a beneficiary is essential!
The importance of having a named beneficiary on your life insurance policy cannot be stressed enough. By not naming a beneficiary, which means insurance proceeds will defer to your estate (making them potentially subject to taxes), your surviving spouse could be forced deeply in debt and unable to care for your children properly and pay off debts.
We can help you choose the proper life insurance for your individual needs. After submitting a request through Life-Insurance-No-Beneficiary.com, you'll hear from one of our experience life insurance representatives who can ensure that the proceeds from your life insurance policy are distributed according to your wishes.