Choosing your beneficiaries, who are the people or entities who receive the benefits when you die, is arguably the most important part of owning life insurance.
However, picking this recipient may not be as easy as you imagine. After all, state laws and policy rules can limit your options. Additionally, changing or correcting your beneficiary isn’t as easy as switching bank accounts. As such, it’s imperative that you clearly understand how your life insurance company handles beneficiaries before committing to a policy.
Who Can Be a Life Insurance Beneficiary?
Great question. Short answer? Pretty much anyone, such as A person, such as your spouse or partner.
Multiple people, like your three children.
A trust.
Your estate.
A charitable organization.
A legal entity, like your company. Depending on your insurer, you may only be able to designate a certain number of beneficiaries. When compiling your list, be selective if your policy has such a limit….