Preheader

 

Get A Quote About Contact Home Page
  • Home
  • Get a Quote
    • Apartment/Condo
    • Automobile
    • Aviation
    • Boat
    • Business
    • Farm
    • Flood
    • Homeowners
    • Life
    • Motorcycle
    • Recreational Vehicle
    • Renters
  • Customer Service
  • Make a Payment
  • Claims
  • Resources
    • Refer a Friend
    • Hurricane & Flood Info
    • Louisiana Department of Insurance
    • Our Carriers
    • Insurance Glossary
  • Secure Area
  • Blog
  • Areas We Serve
    • Gulf Coast Region
    • Baton Rouge
    • New Orleans
  • About
    • About Us
    • Our Locations
    • Testimonials
    • Privacy Policy
  • Contact
    • Contact Us
    • Join Our Newsletter
 
McInnis Insurance Services, Inc.

Personal Business Life Entertainment Medical Professional
Home > Blog > Who Should Be Your Life Insurance Beneficiary?
TUESDAY, AUGUST 25, 2020

Who Should Be Your Life Insurance Beneficiary?

When you decide to buy life insurance, you have to choose your policy beneficiary. This is the person who will receive the money from the policy upon the insured person’s death. You cannot be your own life insurance beneficiary, since you have to die for the policy to pay out. Who should you choose to be your beneficiary? Can you take steps to make sure the money goes to the best place? a group of people in a garden

 

Who is a beneficiary?  

 

At their core, life insurance policies involve two parties – insureds and beneficiaries. The insured person is the one who will have to pass away for the policy’s death benefit to pay out. The beneficiary is the person who will receive that money.  

 

Usually, the insured must approve the beneficiary at the time the policy takes effect. The thing about choosing a beneficiary is that the insured usually has choices of who they can name. Often, the beneficiary is the person that you feel can benefit most from the death benefit. They might include: 

 

  • Spouses  

  • Adult children  

  • Close friends  

  • Estate managers or lawyers  

  • Charities of your choice  

 

Policies don’t go through escrow. So, creditors cannot claim the money before the beneficiary receives it. However, there are limitations on beneficiaries at certain times.  

 

Beneficiary Limitations and Solutions  

 

If you name a beneficiary, it usually must be a person who can legally receive the money. Children under the age of 18 or dependent adults often cannot receive the money. However, you can choose to place the death benefit in a trust account to help solve this problem.  

 

When you list a trust account on your policy, the death benefit will go into that trust upon your death. The trust will name a responsible person to manage the money until its intended recipient can receive it. The trust can also include stipulations on how the recipient can use the money. So, some people choose to place life insurance money in trust if they want it to go to a specific purpose, like mortgages or educational expenses.  

 

When choosing your life insurance beneficiary, talk to your agent about who you have in mind and where you want the money to go. They can then guide you on the right steps to take to get the money to the proper beneficiary. If necessary, also let the beneficiary know that they are on the policy. They will know that they might need to claim the money upon your death. 

Posted 2:27 PM

Tags: life, insurance, policy, beneficiary
Share |


No Comments


Post a Comment
Required
Required (Not Displayed)
Required


All comments are moderated and stripped of HTML.

NOTICE: This blog and website are made available by the publisher for educational and informational purposes only. It is not be used as a substitute for competent insurance, legal, or tax advice from a licensed professional in your state. By using this blog site you understand that there is no broker client relationship between you and the blog and website publisher.
Blog Archive
  • 2023
  • 2022
  • 2021
  • 2020
  • 2019
  • 2018
  • 2017
  • 2016
  • 2015

  • insurance(34)
  • coverage(29)
  • home insurance(18)
  • mcinnis insurance services(16)
  • renters insurance(15)
  • auto insurance(15)
  • life insurance(13)
  • louisiana(10)
  • baton rouge(10)
  • protection(7)
  • baton rouge la insurance(7)
  • tips(6)
  • liability(5)
  • car insurance(5)
  • safety(5)
  • entertainment insurance(5)
  • business insurance(5)
  • policy(4)
  • spring storm tips(3)
  • homeowners(3)
  • car(3)
  • property(3)
  • premiums(3)
  • rates(3)
  • options(3)
  • condo insurance(3)
  • flood insurance(3)
  • costs(3)
  • new orleans(3)
  • value(2)
  • home(2)
  • baton rouge insurance(2)
  • motorcycle insurance(2)
  • damage(2)
  • life(2)
  • jewelry insurance(2)
  • belongings(2)
  • homeowners insurance(2)
  • auto(2)
  • renters(2)
  • accidents(2)
  • fire(2)
  • savings(2)
  • policies(2)
  • transportation(1)
  • at-fault(1)
  • exclusion(1)
  • summer(1)
  • beneficiary(1)
  • alarms(1)

View Mobile Version
icon Our Latest Blog
Read more >
icon What People Are Saying
Read more >
  • Progressive
  • CNA
  • Travelers
  • Liberty Mutual
  • Safeco
  • America First
  • America First
  • guard
  • gulfstates
  • lighthouseexcalibur
  • metlife
  • southernfidelity
Connect With Us: Facebook Twitter LinkedIn Google+ Yelp RSS
Icon

Visit Us

Agency
McInnis Insurance Services, Inc.
7814 Office Park Blvd
Baton Rouge, LA 70809

Phone: 225.926.0860
Toll Free: 844.926.0860
Fax: 225.923.3418
Icon

Site Links

Personal Insurance
Business Insurance
Life Insurance
Entertainment Insurance
Medical Professional Insurance

Hurricane & Flood Information
Make a Payment
Customer Service
File a Claim
Contact Us
Please note that we cannot bind insurance via email, fax or phone. Any quotes given are subject to underwriting guidelines by the respective insurance carriers. Any reference of coverage used is not intended to express legal opinion as to the nature of coverage, but rather just a brief generalization of coverages. Please read your policy for specific details of coverages.
© Copyright 2017. All rights reserved. Powered by Insurance Website Builder
How Can We Help You?
or call us at
225.926.0860