Life Insurance Basics: What Is a Beneficiary?

Life Insurance Basics: What Is a Beneficiary?

If you are seeking a Connecticut life insurance company, you should educate yourself about the basics of life insurance. One basic concept with which you should be familiar is the “beneficiary” of a policy. A “beneficiary” may be defined as the entity or individual you name in a life insurance policy to receive benefits upon the event of your death. As a beneficiary, you may name:

  • A single individual
  • Two or more individuals
  • Your estate
  • A charity
  • The trustee of a trust you’ve created

Two Tiers of Beneficiaries

In naming a beneficiary on your life insurance policy, you should actually name both a primary beneficiary and a contingency beneficiary. The primary beneficiary will receive whatever benefits are attached to your life insurance policy on the event of your death. However, if for some reason the primary beneficiary cannot be located, then the benefits will go to the contingency beneficiary.

Other Considerations

When naming beneficiaries on a life insurance policy with your Connecticut life insurance company, you should be as specific as possible. For example, rather than simply saying your “spouse” or “children” are the beneficiaries, you should specify them by name and include their social security numbers. This is a way to make your wishes as clear as possible and avoid possible disputes after your passing.

Nobody enjoys thinking about life insurance, but your Connecticut life insurance company can help make the process as smooth as possible.

 

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