LIFE INSURANCE BENEFICIARIES

Definitions:
BENEFICIARY: A beneficiary is a person, estate, endowment or organization named by you to receive the life insurance proceeds when the policyholder dies. by designating a beneficiary, you tell the life insurance company specifically what to do with the insurance proceeds after the policyholder's death.

PRIMARY BENEFICIARY: A Primary beneficiary is your first choice to receive life insurance proceeds. You may be able to designate more than one person as a primary beneficiary.

CONTINGENT BENEFICIARY: A contingent beneficiary is your second choice to receive the life insurance proceeds if all of the primary beneficiary(ies) is (are) not living at the time of the policyholder's death. You may be able to designate more than one person as a contingent beneficiary.

A MINOR, MENTALLY INCOMPETENT PERSON OR ESTATE AS BENEFICIARY: If you should choose a minor or person who is not legally competent, or an estate as beneficiary, it may be necessary to have a guardian or administrator appointed before any proceeds can be paid. This may mean delay and additional expense for your beneficiary.

Planning a beneficiary is based on many different situations that come about based on your age, marital status, whether you have dependents, or your financial status. Below are some examples of why you would choose different people to be your beneficiary.
NOTE: that these examples are simplified and you should talk to a trained agent before making any decisions regarding who you should designate as your beneficiary.

PARENTS

You would make your parents the beneficiary of your life insurance policy for the following reasons.

• You are single with no children, no debt and you just want to cover your funeral expenses.
• In case both you and your spouse dies and you want the parents to take care of your children.
• You want to give a gift to your parents

SPOUSE

The spouse as a beneficiary is probably the important as you get more and more involved financially.

CHILDREN

You should consider your children as beneficiaries if they're over 21 and you feel that they can make mature financial decisions.

EXECUTOR

FAMILY MEMBERS

FRIENDS

CHARITIES