WHAT IS THE DIFFERENCE BETWEEN REPEATABLE AND REVERSIBLE LIFE INSURERS?

If you have life insurance with a revocable beneficiary, you can change the beneficiary of your policy without the consent of the current beneficiary.

However, a policy with an irrevocable beneficiary requires that the policyholder obtain the consent of the current beneficiary before making a change.

HOW TO CHOOSE A LIFE INSURANCE USER

Choosing a beneficiary is a very personal decision based on your values ​​and financial situation. Your beneficiary can be any person or organization of your choice, e.g. B. A spouse, child, trust, or so-called charity III.

Wife:

When you die, think about how losing your income would affect your husband or wife financially. Could he or she make ends meet? Life insurance benefits can be used to cover expenses such as your mortgage, long-term debt, and even the cost of a funeral. Please note that some states, according to nolo.com, require permission from your spouse to designate someone other than your life insurance beneficiary.

Boy:

Do you have dependent children? Life insurance benefits can be used to pay for college education in the future. However, note that minors (defined as minors under 18 or 21 depending on the state) cannot be designated as direct beneficiaries, according to the American Institute of Certified Public Accountants (AICPA). You may want to trust the child's name or appoint an adult administrator for the money. AICPA recommends that this adult trust or custodian be designated as the beneficiary of the policy.

Charity:

You can designate a charity as the beneficiary of a life insurance policy. If there is a cause or charity that is close to your heart, you can "donate" the benefits of your policy when you die.

Several beneficiaries:

For example, you can choose to divide your performance into thirds between two children and a surviving spouse. If you select more than one beneficiary, you must specify the amount or percentage of the death benefit that each beneficiary should receive. Your insurance policy may limit the number of beneficiaries you can choose, explains III.

If you do not specify a beneficiary, most life insurance policies generally designate a specified beneficiary. Generally, the standard beneficiary is your estate. However, it is advisable to check with your representative, who is the default beneficiary of your policy.

HOW TO CHANGE A BENEFICIARY

The birth or adoption of children, marriage, divorce, or other changes in the circumstances of life can lead you to change your beneficiaries.

The birth or adoption of children, marriage, divorce, or other changes in the circumstances of life can lead you to change your beneficiaries.

Don't assume changes in your will are enough to change beneficiaries, says AICPA. If you want to change the beneficiaries of your policy, you must send a form to your life insurance company.