One of the reasons a life insurance policy review can be helpful is due to the changes we experience through life. Whether it is graduating from college, getting married, purchasing a home, having children or retiring, life’s changes provide opportunities and offer challenges.
Those changes can impact who is the best person or persons to list as a beneficiary on our life insurance policy or policies. The beneficiary is the one who will get the proceeds from these policies, so keeping them updated is crucial. Here are some situations when you should review your life insurance and your beneficiary.
If a Beneficiary Should Die
This can happen especially when a life insurance policy was taken out when you were young, and a parent or parents were named as beneficiaries. Of course, there may be other situations were a beneficiary may pass before the insured, including a spouse. .
When You Get Married
When you get married, odds are you will want to change your life insurance beneficiary to your spouse. This is a time of changing responsibilities as well and a life insurance review can be prudent at this time.
If You Get a Divorce
Unless you believe your ex remains your best option, you will likely want to change your beneficiary should you get a divorce from them. In some instances, you may wish to change beneficiaries when divorce proceedings become imminent.
When a Relationship Changes with Your Beneficiary
You may have a special friend named as a beneficiary and your relationship has changed. Perhaps a beneficiary has moved out of state or even out of the country. There could be a myriad of reasons relationships change that could trigger a beneficiary change.
Beneficiaries are a key component in the life insurance process, and it is often a good idea to select a primary and a secondary beneficiary. The secondary beneficiary would serve as a default if something would happen to the primary beneficiary and/or a delay occurs in updating the primary beneficiary. Changing beneficiaries is a straight-forward, simple process that can be easily accomplished by contacting one of our independent insurance agents.
While you are checking and updating beneficiaries, organize and review those policies to ensure you have sufficient coverage. Again, our independent insurance agents are here to help. Call for your no obligation life insurance review today!