Beneficiary designations are used to identify the recipient(s) of your insurance benefits. A Member who is insured for Life Insurance with Standard Insurance Company (The Standard) may name whomever he/she wishes as beneficiary.
When you purchase a life insurance policy, you can designate one or more beneficiaries to receive the death benefit in the event of your demise. There are essentially no restrictions on who you may choose. Moreover, you can quickly modify your beneficiary if, for instance, your marital status changes. For minors, you must name a trust or legal guardian as the beneficiary in order for them to receive the death benefit.
Your beneficiary can be:
• A person
• Several people
• An estate
• A trust
• A charity
Life Insurance Beneficiary Designation tips:
Here are some basic things to know about naming a life insurance beneficiary along with a few helpful tips:
Know that you can list multiple beneficiaries. You may designate one, two, or more recipients. Typically, you'll be asked what percentage of the payout goes to each beneficiary; for example, you could allocate 70% to a spouse and 30% to an adult child.
Make sure you designate a contingent beneficiary. Consider a contingent or secondary beneficiary as a backup. He or she receives the life insurance payout if the primary beneficiary is deceased at the time the payoff is made.
Be particular with names. It is preferable to list the name and Social Security number of each recipient instead than a generic term such as "my children." This will eliminate any confusion and expedite the payment procedure.
Keep your beneficiaries in the loop. Tell your life insurance beneficiaries about your plans and provide them copies of the policy.
Review your life insurance policy and its beneficiaries once a year. In addition to an annual policy review, you’ll want to revisit your life insurance policy after any major life event like a marriage, birth, divorce, or death.
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