Should I entitle my child the beneficiary of my life insurance?

As far as life insurance goes, we can basically name anyone to be the beneficiary of our contract. Does that make it an easy decision? No. Insurance is a very serious financial safety tool and ought to be treated as such. That implies booking an appointment with a licensed, experienced insurance agent and consulting him about all matters. Making hasty moves might jeopardize your Over-50-Life-Insurance-300x166policy and have unpleasant consequences.

An insurance policy is a contract designed to offer financial protection to your loved ones in case something unfortunate happens to you. Thus, you, as the insured, name a person (called a beneficiary) who is granted the legal rights to receive the insurance death benefit. Most states, with very few exceptions, give full liberty in terms of naming the insurance beneficiary: it can be whoever you want, from your wife and children to your postman and mistress. Nonetheless, the majority of insurance clients opt to give this power to their spouses or significant others.

Where does that leave the children? Naturally, you can make your children beneficiaries. But it might prove to be a problematic action, especially if we are talking about minors. Should something happen to you while your child beneficiary is still underage (under 18 or 21, depending on the state) proceedings will be initiated in order to name a legal guardian who will administrate the funds in the name of your child. Such a maneuver takes time and is, naturally, costly.

If your children are, however, adults, there is no impediment in naming them the beneficiaries of your insurance policy. In order to be extra-safe, don’t settle for just a primary beneficiary and consider introducing both your spouse and your children in your contract. And don’t forget to update your policy every couple of years or so and consign all important changes.

For reliable information about family life insurance make sure you visit us and get a free insurance quote. Don’t forget – the ideal insurance policy might be just one click away!