Critical Beneficiary Information

Do you know who is going to receive the death benefit when you die?

This may seem like a silly question but the reality is that most Americans do not keep their beneficiary information up-to-date on their life insurance policies. The real tragedy lies in the timing of the discovery and the lack of ability to do anything about it. Think of the effect of monies being mis-designated because of simply forgetting to update the beneficiaries on your life insurance policy. Some studies indicate at times there are no beneficiaries listed at all- this poses an obvious problem, to the policy owner and to the intended beneficiaries.

When is the last time you reviewed your policy with your family? Times are changing at an alarming rate. The family dynamic is constantly evolving and growing. It seems that every day a new baby is welcomed into a family, a son in-law, a granddaughter, or even a strong desire to leave a living legacy to a charitable organization. Will you be prepared for what lies ahead? Will all of the planning you have done for your future and the future of your family count when it’s needed most or will you act too late?

The good news is the solution is simple. Clients should keep their changing relationships and commitments in check with their policy to insure when the time comes loved ones are taken care of; after all isn’t that one of the main reasons for buying a death benefit? A good rule of thumb is to look back at your beneficiaries at least every two years to ensure you have captured and updated your policy to reflect the goals you have for your situation. Keeping your designation of funds in check can save your family from a lot of tears, heartache, and worry—will you insure your family/charity is taken care of as you would have them to be?