How to Name your Life Insurance Beneficiary


One of the things that you will have to do when you get life insurance is to name your beneficiary. This is the person that will receive the benefits of your life insurance policy if you are to pass away. This seems like a fairly easy thing to do since most people know that they want their spouse or children to receive benefits if they die. However, choosing the beneficiary is not the same as officially naming the beneficiary. Doing this is also fairly easy but it requires that you understand a few things.

Revocable vs. irrevocable beneficiaries

First, you need to understand that there are two core types of different beneficiaries and you want to choose the right type for you. Those two types are:

o Revocable beneficiaries. You can name them now but change this at any time that you want to in the future.
o Irrevocable beneficiaries. Once you have named these, you can’t change them unless the person that you’ve named gives legal permission for you to make the change.

Most people will choose a revocable beneficiary because of the flexibility that it offers. There come times in life when you may want to change your life insurance beneficiary (such as when you get married, when you have children and when your spouse dies). However, in some cases, as with divorce settlements and prenuptial agreements, it is sometimes required or better to choose an irrevocable beneficiary.

More than one beneficiary

You do not have to name one single person to be your beneficiary. In fact, most people name more than one beneficiary. There are two common ways that this can be done:
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Author by Line:
Joe Keefe is the managing editor at Freeinsurancequotes.org, a site that provides insurance quotes across the country.
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