Do Not Make Common Errors with Naming Your Life Insurance Beneficiary

Anyone interested in purchasing life insurance is doing so because they wish the funds to be directed towards someone that will be named as a beneficiary. While this is certainly obvious, there are other aspects to naming a beneficiary that might not be so obvious. Namely, it might be best to name at least two backup beneficiaries. Why is this? Your primary beneficiary may die before you or even the same time as you. As morbid as this may sound, you and two named beneficiaries could be killed in an accident together leaving other family members without a claim to the life insurance policy. Again, this is a rather brutal situation to describe but it does happen and anyone serious about the proper management of a life insurance policy does have to take time out to address such issues.

The ability to do so is not very difficult. You would simply discuss the matter with the broker of the insurance company. (The State Insurance Guide is a great resource for brokers) Instead of naming one beneficiary, it would be wise to have two more listed as this would not be a problem at all as far as underwriting the insurance policy is concerned. To do so can prove to be aid in avoiding an otherwise disastrous situation.

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