Co-Founder, TermInsuranceBrokers.com, Goldenzweig Financial Group, Las Vegas, Nevada
It depends on the situation of what the insurance is for.
In general, the most common situations will be the insured's spouse or child/children because the insurance is being used for family protection purposes. If you're using a trust, the trust will generally be the owner and beneficiary of the policy (required for ILITs).
If the policy is being used as part of a buy-sell agreement or a key-man policy for business purposes, then the other executive/business partner will likely be the beneficiary.
President | Founder, CLM Insurance Group, Delray Beach, FL
Whomever needs the death benefit protection in the event of your untimely death. But don't forget that that person (or entity) has to have insurable interest in the first place to be listed as the beneficiary on the policy.
Most common beneficiaries are spouse, children, business partners or life insurance trusts.
If you want your beneficiary to pay off your final expenses, you will want to name someone you trust to handle the proceeds as you would have wished. Or you can set up a trust that spells that out, then leaves the death benefit to the trust.
If you are leaving your money to your survivors to use for their needs, it is best to name an adult as the Primary beneficiary. If left to minors the court will appoint a financial guardian to handle this asset until they are of adult age. You can handle this by setting up a trust and leaving the money to the trust, or at the very least, name a financial guardian for your children in your will.
The rule of thumb when choosing a beneficiary is the person who has the most to lose by your death. A loved one usually a family member is chosen as a primary beneficiary and maybe a child will be chosen as the contingent beneficiary.
However in cases where no one would be hurt financially upon your death, the next person to consider would be the person who will handle your funeral arrangements and estate. This way they have the cash to pay final expense and other final bills.
President, Lane Independent Agency, Southern California
Who do you care about?
Who do you want to be certain has enough assets to take care of themselves if you are gone?
Are you married? Do you have kids? Other loved ones? Charities you care much about?
These are your beneficiaries. Life insurance is about protecting those you care about.
Gary Lane. Thank you.
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In general, the most common situations will be the insured's spouse or child/children because the insurance is being used for family protection purposes. If you're using a trust, the trust will generally be the owner and beneficiary of the policy (required for ILITs).
If the policy is being used as part of a buy-sell agreement or a key-man policy for business purposes, then the other executive/business partner will likely be the beneficiary.
Most common beneficiaries are spouse, children, business partners or life insurance trusts.
If you are leaving your money to your survivors to use for their needs, it is best to name an adult as the Primary beneficiary. If left to minors the court will appoint a financial guardian to handle this asset until they are of adult age. You can handle this by setting up a trust and leaving the money to the trust, or at the very least, name a financial guardian for your children in your will.
However in cases where no one would be hurt financially upon your death, the next person to consider would be the person who will handle your funeral arrangements and estate. This way they have the cash to pay final expense and other final bills.
Who do you want to be certain has enough assets to take care of themselves if you are gone?
Are you married? Do you have kids? Other loved ones? Charities you care much about?
These are your beneficiaries. Life insurance is about protecting those you care about.
Gary Lane. Thank you.