Life Insurance Beneficiaries. What you need to Know.

Naming your life insurance beneficiary designations



After getting your term life rates, and applying for Life insurance, policies require that you name a beneficiary to receive the proceeds of your policy should death occur. People purchasing life insurance often do not give the beneficiary designation process much thought and simply name a spouse and/or children. However, selecting your beneficiary and keeping your choice up to date is important. Here are some of the things that you might want to consider:



Life insurance proceeds payable to named life insurance beneficiaries pass outside of probate. Naming your "estate" as beneficiary subjects the money to the probate process and that can be both lengthy and costly. Life insurance proceeds are paid immediately to named beneficiaries.