Make Sure Your Loved Ones Are Always Secure
If you have dependents, you probably have a life insurance policy. At times, though, it needs to be changed based on your life circumstances.
When you purchased a life insurance policy, you named a beneficiary (or several, as there can be primary, secondary and tertiary beneficiaries). The beneficiary is a person who receives the proceeds of the policy in the event of your death. You probably named your spouse or child or another relative for whom you would like to provide.
While the amount of the life insurance benefits and the beneficiary are chosen by you during your lifetime, they likely can be altered during your lifetime, depending on the designation type you chose at the time of policy issuance.
Specifically, when you purchased your policy, you probably chose for the beneficiary designation to be either revocable or irrevocable.
A revocable designation allows you to change beneficiaries after the policy comes into force, while an irrevocable designation cannot be changed in the future without the consent of the beneficiary.
Most policies, however, have a revocable beneficiary designation.
Why would you want to change a beneficiary?
Perhaps you have had or adopted a child. Perhaps someone has died. Perhaps you have divorced. Perhaps a child has reached adulthood and no longer needs your support. The options are many, and it’s a good idea to review your circumstances each year to determine if a change needs to be made.
Changing your beneficiary designation – or redirecting the proceeds of your life insurance policy – is usually simple. Simply contact the insurance company and ask how you should proceed.
If you’re unsure whether to change your life insurance beneficiary, feel free to contact your agent. Your agent can assist you with this and all other life-insurance-related matters.