It’s smart to review your beneficiaries on an annual basis. Life can bring many changes and some of these changes make it necessary to update your beneficiaries.
Have any of the following occurred in your life since your last beneficiary review?
- You became engaged.
- You were married.
- You were divorced.
- Your child is no longer of minor age.
- A new grandchild was born.
- You created a will.
- You created a trust.
- You moved to a new state.
- You took out a loan.
- You lost your spouse.
- You became involved with a charity.
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If you became engaged…
If you want your future spouse to be a beneficiary of your life insurance policy, be sure to update the policy to designate your fiancé. You are not required to be legally married in order to name him or her your policy’s beneficiary.
If you were married…
If you were not yet in a serious relationship with your spouse when you first bought life insurance, you may have named a parent or sibling as your policy’s primary beneficiary. Be sure to update the designated beneficiaries if you wish your spouse receive any benefits.
If you were divorced…
Dying and leaving life insurance benefits to an ex-spouse happens more often than you may think. If you get divorced, forget to remove your ex-spouse as the policy beneficiary and die, the death benefit goes to your ex-spouse. Even if you remarry, your surviving spouse would have no legal rights to that death benefit.
» Learn more: Life Insurance After a Divorce
If your child is no longer of minor age…
People often buy life insurance to protect the financial wellbeing of their children, but it’s not advisable to name