Life Insurance Beneficiary Decisions: Who Should Inherit?
Making the right life insurance beneficiary decisions ensures your family is protected.
Life insurance is only valuable if the death benefit goes to the right people. Here's how to make those decisions.
Primary Beneficiaries
Your primary beneficiary should be whoever depends most on your income. Usually a spouse or children.
Contingent Beneficiaries
Name backup beneficiaries in case your primary beneficiary dies before you.
Updating After Life Changes
Review beneficiaries after marriage, divorce, birth of children, or death of a beneficiary.
Minor Children
If naming minor children, consider naming a guardian to manage funds.
Trust as Beneficiary
Naming a trust as beneficiary provides more control over how funds are used.
Avoiding Probate
Beneficiary designations pass directly to beneficiaries, avoiding probate.
Tax Implications
Some beneficiary choices have tax implications. Consult a financial advisor.
Use the End of Life Playbook to organize your life insurance decisions.