Cumberland, MD, residents considering life insurance should be prepared to name one or more beneficiaries when buying a policy. This means you’ll need to take some time to think about who you want to leave money to upon your passing.
Who can Benefit?
Spouses and children are the most common beneficiaries. However, you can name any beneficiary you want. In fact, you can name more than one beneficiary and spell out the percentage of benefits each beneficiary receives. For instance, you may want to give your spouse a 50% benefit and divide the remaining 50% between your adult children. Alternatively, you can name a charitable organization as a partial or sole beneficiary.
Making Contingency Plans
Your personal life may change drastically as the years roll by. You may get divorced, your spouse may pass on before you do, or your adult children may have kids. It’s wise to name one or more contingent beneficiaries to accept benefits if the original beneficiary can no longer do so. For example, you may stipulate that if you get divorced, your benefits will be divided between adult children or given to charity.
Special Arrangements for Minors
Cumberland, MD, residents who name a minor child as the sole or partial beneficiary must make arrangements to keep the funds safe until the child reaches legal age. This can be done by setting up a trust or Uniform Transfers to Minors account.
Get More Information from Knippenberg Insurance Inc.
Buying a life insurance policy and naming one or more beneficiaries is a weighty decision. At Knippenberg Insurance Inc., we offer policy options and good advice to help you make sound decisions. Get in touch to find out more or to get a policy quote.
