Review Your Beneficiaries

Be sure to review the beneficiaries of any life insurance that you may have. You might have policies or assets that you don’t think about such as your employer sponsored life insurance or an investment or savings account such as a 401(k) or Individual Retirement Account. In my Human Resources career I have seen occasions where an employee forgot to change their beneficiary and when the employee died, we had to pay the company life insurance to the ex-spouse rather than to the current spouse or children.
If you make your minor children the beneficiaries of your life insurance, the payment will be held until a guardian is named and that person files a claim on behalf of your minor children. To simplify the payment you can name a trustee to receive the proceeds on behalf of your minor children. That person should also be named in your will with any specific directions on how you wish them to manage the funds on behalf of your children. You can get simple wills done inexpensively so shop around before retaining an attorney to write one for you.
Also name a secondary or third-level beneficiary in the event that your primary beneficiary is not available to receive the benefit. While you are at it you may want to change the emergency contact information that you have given to your employer.

No comments yet.

Leave a Reply