How Many Beneficiaries Should I Have?

Having a backup beneficiary, also called a contingent beneficiary, is a good idea. Many policy owners forget to update their policy when a beneficiary passes away. If there are no living beneficiaries, the insurance proceeds are left to the estate. Many of the financial advantages of life insurance evaporate whenever the estate is the beneficiary of a policy. Bottom line: always list a contingent beneficiary.

You can also split the insurance proceeds among several primary beneficiaries. This isn’t common on small policies, but it may serve a purpose on larger policies. Simply list out all the primary beneficiaries and what percentage they receive. Go to our contact us page if you have questions.

Author: ctopping

Licensed life insurance agent serving Houston and surrounding cities for over 8 years.

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s