Imagine that you purchased your life insurance policy years ago, and you’ve made the premiums faithfully ever since. Maybe you even had those premiums deducted from your paycheck or bank account automatically, so you’ve never even had to think about your policy. What could go wrong?
As it turns out, plenty could go wrong! Whom did you choose as your beneficiary, all those years ago? Many people name their spouse. But in the meantime, they’ve divorced. If you’ve since remarried, you probably wish to name your new spouse as beneficiary. If you haven’t remarried, you might prefer to dedicate that money to a grown child.
On the other hand, if you’re divorced with minor children, you might still wish to keep your ex as a beneficiary. It’s your call.
Aside from divorce, other situations can alter your beneficiary designations. Is the person you chose still capable of hand who would need income to support them in the event of your passing?
Another common issue is the idea of only selecting one beneficiary in the first place. When you’re sitting comfortably in your insurance representative’s office, it can be difficult to imagine devastating, life-changing events. But isn’t that why you’re there in the first place? It’s entirely possible that something could happen to both you and your life insurance beneficiary in a short window of time. Establishing backup beneficiaries will help ensure that your final wishes are followed.
As you can see, a lot can happen between that initial appointment to purchase life insurance, and update them if necessary.
If you need help with this process, give us a call. We can also help you review your current life insurance policy to help you determine whether it still meets your needs.