As an intending policyholder with a life insurance company, you would be expected to select a beneficiary for your life insurance policy. In simple terms, your beneficiary is the individual who will receive your death benefit when you are no more. Here are some tips to help you select a beneficiary.
Pick your preferred class of beneficiaries
There are two classes of beneficiaries in life insurance – revocable and irrevocable beneficiaries. The former allows you to make changes to your beneficiaries at any given time. The latter, however, would require the consent of your former beneficiary before you change him or her.
Identify the primary beneficiary
Your next step would be to decide who would be the primary beneficiary of your insurance claim when you are no more. In filling the document, ensure that you correctly put down the full names, address, contact phone numbers, date of birth and social security numbers of the beneficiary.
Include a secondary beneficiary
There are cases where the primary beneficiaries die before the policyholder, thus leaving the beneficiary position vacant. It is therefore essential that you designate a secondary or contingent beneficiary for your life insurance claim.
Making changes to your beneficiary
Due to one reason or the other, you may need to make changes to the beneficiary of your insurance claim. Contact your insurer and request for a “change of beneficiary” form. This process is more straightforward if you had chosen the revocable class of beneficiary than the revocable class of beneficiaries.