Can Anyone be a Beneficiary?

After purchasing a life insurance policy in Aliso Viejo, CA, your next step is choosing a beneficiary. Your beneficiary is the person(s) or organization who will receive benefits from your policy upon your demise. Although there are no strict rules for choosing a beneficiary, these tips from BenefitSource Insurance Services, Inc. can help make your decision.

One or More?

You can choose one or several beneficiaries to receive your life insurance benefits after you’re gone. If you choose more than one beneficiary, you can designate how you want the benefits to be divided between each. Your beneficiaries can be a relative, friend, spouse, children, or even a lover. If you choose minor children as beneficiaries, you’ll need to appoint a legal guardian to manage these funds or put the funds in a trust until your children are of legal age.

Person or Organization?

In addition to people, you can choose an organization in California to be your beneficiary, such as your favorite charity, a local children’s club or any other organization you support now and would like to continue supporting after you’re gone. Whether you choose an individual(s) or organization, be sure to let them know so they can file a claim upon your demise.

Update Your List of Beneficiaries

Be sure to update your choice of beneficiaries, if necessary, while you are around. You can change your beneficiary at any time while you are alive. If you named your spouse as a beneficiary and later got divorced and remarried, you may want to remove your former spouse from the list of beneficiaries and add your current one to ensure he or she is taken care of upon your demise.

For help in purchasing a life insurance policy or choosing a beneficiary, call or visit us at BenefitSource Insurance Services, Inc. in Aliso Viejo, CA.