Obtaining a life insurance policy from THINK Insurance & Financial Services in Pomona, CA is the first step toward establishing a financial foundation for the future. The next step is naming a beneficiary. Your beneficiary will receive the proceeds of your policy upon your demise. Here are a few aspects to consider when selecting a life insurance beneficiary.
Spouse and Family
If you’re married and have children, your primary responsibility is to your immediate family. Naming your spouse and kids as beneficiaries provides them with financial support to carry on after you’re gone. Proceeds from your policy can be used to pay the bills, liquidate debts, cover childcare and medical expenses and more, giving your spouse time to plan for the future.
Even without children, your spouse will need financial assistance after you’re gone, especially if you were the main breadwinner of the family.
If your parents helped co-sign your private student loans or loaned you money for a down payment on your home, you may want to name them as co-beneficiaries with your spouse to help repay their generosity. This alleviates your parents of the financial burden of these outstanding debts.
As a single parent, you may want to name your minor child or children as beneficiaries of your life insurance policy. If so, be sure to designate a trusted custodian to help manage these funds until your kids come of legal age to make decisions on their own. You can also place these funds in a trust for your children to be distributed at a designated time.
Other considerations for beneficiaries include siblings, close friends, business partner or your favorite charity for which you’d like to provide financial support.
For more information on choosing a beneficiary or life insurance options and costs, contact THINK Insurance & Financial Services in Pomona, CA.