Figuring out who will receive the proceeds of your Life Insurance in Hialeah, Florida is an important decision, and we at J.E. Insurance Associates DBA Amco Insurance encourage clients to think about it carefully before signing the papers.
Here are some tips that can help you choose the perfect beneficiary and avoid some common mistakes new policyowners face.
- Keep your purpose for getting the policy in mind.
Why are you getting Insurance Services in Hialeah, Florida in the first place? This should drive your choice. Is it to provide your family with financial security after you’re gone? If so, then your spouse or children might be the best choice. If it’s to continue your business, it might be your business partner.
- List down all your options.
There are more people to choose from than just your spouse and kids. You can designate any one or more of the following as beneficiaries:
- One person
- Two or more people (you may decide how they will split the proceeds among them)
- A non-profit or charity
- Have a contingency plan.
In the event that your primary beneficiary refuses to receive your life insurance proceeds upon your death or can’t be located by the provider/agency, a secondary beneficiary becomes the recipient.
- Avoid designating a minor.
Limitations due to state regulations may affect if or how much a minor will receive from life insurance proceeds, so the court may have to assign a guardian to monitor and administer the funds. That can be a lengthy process – one that usually requires multiple court dates.