Life Insurance Plano TX

The Basics Of A Beneficiary

Understanding How Your Life Insurance Benefit Will Be Doled Out

When you take out a life insurance policy, you protect your loved ones. That is because when you pass away, your life insurance will pay out a sum to the person, people, or entity you have designated as your beneficiary. Your beneficiary receives this money to ease the transition of adjusting to life without you, helping him, her, or them maintain the quality of life you enjoyed together and stay on track for achieving financial goals.

You have a few options when it comes to naming your beneficiary. The most common option is to name one individual (usually a spouse or other family member) as your primary beneficiary who will receive the benefit from your policy in full. You can also name multiple people as your beneficiaries; just make sure that you specify what percentage or specific amount you would like given to each person.

You can also name a charity, trust, or other entity as your beneficiary.

If you experience a life event that causes you to want to change your beneficiary, you can. Whether you got married, had a child, got divorced, or experienced another life change, you will be able to name a new primary beneficiary or add a beneficiary to your policy. If you would like to leave your payout to a child, you will need to either name an adult custodian of the funds or a trust set up for that child as the beneficiary. You cannot name a minor as your beneficiary.

If you have any questions about who you should name as your beneficiary or the best way to use a life insurance policy to protect your loved ones, contact Tri-Star Insurance Professionals. Located in Plano, Texas, our dedicated, knowledgeable team is here to help you safeguard your family’s financial future.