Who should be my life insurance beneficiary?

Choosing a beneficiary may seem like a simple decision, but it's one of the most important parts of your life insurance policy. Your beneficiary is the person, people, trust, charity, or organization that will receive the death benefit amount you determine when you pass away. Most people automatically think of naming a spouse or child, but depending on your goals, there are several options available.

Many people don't realize you can name more than one beneficiary and decide what percentage or amount of the death benefit they will receive. You can also name contingent beneficiaries who would receive the proceeds if your primary beneficiary passes away before you. Taking a few extra minutes to think through these decisions today can help prevent confusion later.

Life changes can also affect whether your beneficiary designation still reflects your wishes. Marriage, divorce, the birth of children, blended families, the death of a beneficiary, or changes in your financial goals are all good reasons to review your policy. It's also important to understand that beneficiary designations generally take precedence over what's written in your will, so keeping them current is essential.

Some things to consider:
*Have you reviewed your beneficiaries within the past few years?
*Would the people listed still be the ones you want receiving the death benefit today?
*Have you experienced a marriage, divorce, birth, or death in your family since purchasing your policy?
*Have you name both a primary and contingent beneficiary?
*Is there a charity or organization that has been meaningful in your life that you'd like to support after you're gone?
*If someone will be caring for your pets, horses, or other animals after you're gone, have you considered whether they'll have the financial resources to do so?

Beneficiary designations are easy to overlook because they're often completed when the policy is first issued. Taking the time to review them after major life events can help ensure your life insurance proceeds are distributed according to your wishes and continue supporting the people, organizations, and even the responsibilities that matter most to you.