Some individuals name a temporary beneficiary because they want time to think about it. Typically, once the forms are completed, these individuals rarely change their beneficiaries, so a temporary solution may become permanent – perhaps with unintended results. And if you think an inappropriate beneficiary will simply ‘do the right thing’, think again. They are legally entitled to the money.
Here are five situations you want to monitor:
- Do you have an insurance policy from work that you don’t pay for, or your family members aren’t aware of?
- Has your family expanded due to the birth of children, grandchildren, or adoption? If your child is listed by name as a beneficiary on your policy, you may want to add your additional family members.
- Have you gotten married, divorced, or found a new non-legal love interest? Make sure your policy reflects who you care about right now. If your beneficiary is a girlfriend or boyfriend from five years ago, and they are no longer an important part of your life, you may want to update the information.
- Has your current beneficiary passed on? The death of a spouse typically triggers a designation review. But what happens when your child is a beneficiary, and they die before you? In this situation your child’s children won’t automatically receive their fair share without changes to your policy.
- Have you experienced a major life change such as a job change, relocation, or retirement? This may have serious financial ramifications to your situation. You may need more or less complicated planning because of the size of your estate or changes to your residency.
To avoid awkward surprises, contact your NEC insurance representative today to review your policies. They can help you update your information and provide you with the peace of mind you want for you and your family. Call NEC today at 636.271.2481 or contact Joe Bosse, President.
NEC is one of the largest independent insurance brokers in Missouri offering business and personal insurance, risk prevention, and financial services. Our size allows us to provide you with the best price for the depth of services you receive. Contact us today for more information at 636.271.2481 or visit NECins.com.