Choosing a beneficiary for your life insurance policy might be the toughest part of the entire process. If you have children and a spouse, it might seem like an easy decision: just leave it all to them. …But how much for each one? How do you separate it?
If your children are minors, it’s a good idea to leave their benefits to a guardian who can take care of the money until your children come of age. Sometimes leaving money to a minor can cause problems down the road. Also, if you want to keep the money equal between your children, make sure you specify that in your application. If you have step-children that are not of your bloodline, you will also need to specify if you want to leave them any benefit.
Wording can be tricky on your life insurance. To avoid legal battles for your beneficiaries later on, make it as simple as possible now to make sure it is an easy process later on. If you can include your beneficiaries’ social security numbers on the application, it will help expedite the benefit process later on when it’s necessary. When you pass away, your beneficiaries may have moved away and they might be harder to track down. With the use of their social security numbers, it will be easier to find them
If your current spouse is who you are planning to leave a benefit to, make sure you include her name and don’t just write “spouse”. This could cause problems if you remarry or were in a previous marriage.
If you want to leave a benefit to someone outside of your family, make sure you include their name as well. You can add as many beneficiaries as you’d like to your policy. Remember, it is yours to do with as you’d like.