When it comes to choosing a life insurance beneficiary, the thought of dying becomes fresh. We are forced to think about how our children and parents will live when we’re gone. Fortunately, life insurance makes sure that you give your dependents the best life you can afford in later years. If you are looking for life insurance in Dallas, TX, Alloy Insurance Partners have what you need and more. We help you get the best from your policy and even take you through the process, but there is a problem.
How do you choose and who is eligible to be your beneficiary? Well, this is a personal decision, so our only help is providing you with facts. Here is what you should know about life insurance beneficiary.
People prefer naming family members, but generally, everyone is eligible.
Anyone can qualify to be a beneficiary. Like we said, naming a beneficiary is a personal choice. This is the money you are leaving behind, so it is really up to you to decide who you want to benefit. Some insurance providers in Dallas, TX recommend choosing one or two family members, which is always the case with most life insurance policyholders. Many people buy insurance for the sake of their family members, thats why it makes sense to name one of the members as the sole beneficiary.
Primary and contingent beneficiaries
Life insurance comes with two types of beneficiaries; primary beneficiary and contingent beneficiary. The primary beneficiary is the person who gets the proceeds of the life insurance policy when the insured person dies. A contingent beneficiary, also known as a secondary beneficiary is the person who receives the proceeds if the primary beneficiary dies.
That means that you are allowed to choose two beneficiaries. The policies also allow you to amend the policy like changing the names without the consent of the beneficiaries. For instance, if the primary beneficiary dies before you, you can change and add the contingent beneficiary as the primary beneficiary and find another name to add as contingent.
For more information about beneficiaries, feel free to speak to us at Alloy Insurance Partners today.