If you have life insurance policies, retirement accounts, or annuities, it’s your responsibility to designate a beneficiary. Naming a beneficiary ensures that your loved one or heir is taken care of in the manner you want.
What Is a Beneficiary
A will isn’t the only document that establishes who will receive your assets once you pass away. Assets are often passed down via a beneficiary designation.
Life insurance and retirement accounts, such as 401(k)s, Roth IRAs, and others, are separate from a will. These accounts require a beneficiary—namely, the individual or entity who will receive the proceeds from these accounts or policies once you die. Further, the beneficiary designation on these accounts usually overrides a will….