Common Mistakes in Picking Life Insurance Beneficiaries
Appointing a person to handle money from a life insurance policy often only involves one decision, but this selection is one of the most difficult choices that many people must make. It is common for individuals to make errors, however, when making estate plans, which can result in life-changing mistakes. The following will review some of the most common mistakes that people make when deciding on whom to name as a life insurance beneficiary. Mistake # 1: Failure to Update Your Policy It is critical that people with insurance policies realize that these documents should not be abandoned or forgotten about after being written. Instead, a person should make sure to update a life insurance policy after every major life events including deaths and marriage. Not only is it possible that a person’s perspective on an individual might change, these events can also change how individuals can inherit amounts. Instead, the best advice is for a person is to always make sure that beneficiary choices are kept updated. Mistake # 2: Forgetting Primary Beneficiaries Some people decide on a suitable life insurance beneficiary, but fail to appoint an alternate person to act as a beneficiary. As a result, if something [...]