Tips for Choosing a Life Insurance Beneficiary

Choosing a beneficiary is one of the important aspects of the life insurance policy. The beneficiary is an individual who will receive the financial compensation from your life insurance in the event of your death. Life continues to change, and so does our relationship, so choosing the right beneficiary can become quite complex. Below are a few important tips that will help you choose the right insurance beneficiary.

  • Consider the Purpose of your Policy

The reason why you are buying a life insurance policy should be one of the factors that you should consider while picking up a beneficiary. For instance, if you want to provide your family with financial protection, then your partner would be the ideal choice. Similarly, if the purpose of your life insurance plan is to facilitate the growth of your company, then you should add your business partner as the beneficiary.

  • Be Aware of all Your Options

You do not necessarily have to put a person as a beneficiary. A legal or trust agreement will allow you to place the control of your property into the hands of the trust manager, who can become the beneficiary. You can also name a charity or estate as your beneficiary. If you and your family are financially sought after, then you can add a charity as your beneficiary. If you are not sure which option will be most suitable, then you can take consultation for insurance professionals to make the right decision.

  • Stay Updated with Your Policy Changes

There might be circumstances that will make you want to change your beneficiary. For instance, the beneficiary died before you, or you got divorced in case your spouse is the beneficiary. So, if you experience a life-changing event that might want to make you change your beneficiary, then you should update it timely.

  • Ensure that your Under-Aged Children are Taken Care of

When taking insurance policy, parents often ensures that their under-aged have an adequate amount of money in the event of their death; however, you should do more than putting your under-aged children as your beneficiary. According to the terms of life insurance policy, children don’t receive the money until there are the legal ages of 18 or 21. You should put the money in a trust or designate a guardian who will take care of your children. When you don’t set up a trust or designated guardian, the court takes it upon itself to decide who will manage the money you left for your children, which may or may not be the person you would want.

Taking a life insurance plan allows you to safeguard the future of your loved ones and ensure that your hard-earned money goes into the right hand. This is why adding the right beneficiary is so crucial. Above are some top considerations that you should be thinking when deciding the beneficiary of your life insurance policy. If you still feel confused, then you should take assistance from insurance agents who hold expertise in providing a suitable solution.

About Aegon Life:

With a complete product suite of life insurance plans, superior technology, and customised service, Aegon Life Insurance Company Limited launched its pan-India operations in July 2008. As a joint venture between Aegon – world’s leading financial services and Bennett, Coleman & Company – India’s leading media house, Aegon Life Insurance adopts a local approach to facilitate customer interaction. Our vision to be the most recommended new age life insurance company has enabled us to leverage digital platforms that bring transparent solutions to customer needs. Our financial planning and investment solutions include term insurance plans, pension plans, unit-linked insurance plans (ULIPs), health insurance plans, child education plans, and more.