So you’ve sorted through the various options for senior life insurance, and you’ve picked a policy that you feel is best for you. At the time of application the insurance agent begins to go through all of the questions required for submission. The agent asks, “So, who do you want the beneficiary to be?” This question may catch you off guard, because you haven’t thought about it yet.
First of all, what is a beneficiary? A beneficiary is simply the designated individual that the life insurance policy will pay should something happen to you. For some people, picking a beneficiary is very simple. They simply pick their spouse or their only child or their caregiver.
But, for others it seems more complicated than that. Can you split this up over multiple people? The answer is yes. You can have as many beneficiaries on a policy as you want. These beneficiaries can all receive equal amounts of the total death benefit, or you can split that up according to percentages giving one individual a higher percentage than another.
You don’t have to add multiple beneficiaries in case something happened to the beneficiary that you chose. There will be another question to follow which addressed what is known as the contingent beneficiary. The contingent beneficiary is someone that you choose should something happen to the primary beneficiary prior to you passing. This is best referred to as a backup plan.
For instance, if you have a spouse and two children, most people will pick the spouse as the primary beneficiary, but they will put both of their children down as the contingent beneficiary should something happen to the spouse prior to their passing. No matter how you decide to pick your beneficiary, it is always recommended to have at least one primary beneficiary and one contingent beneficiary as we know that life is not predictable.
Should you have any more questions on beneficiaries or simply want to speak to a licensed agent, you can call us. We are licensed in most states and would be glad to walk you through the process of better understanding senior life insurance including guaranteed issue life insurance for those with a higher risk health conditions.