What to Consider When Choosing a Life Insurance Beneficiary

Life insurance is something everyone needs and no one wants to think about. It is important to make sure that your loved ones are taken care of in the event of your passing. We offer auto, life, and umbrella policies at Parker Preferred Insurance in McKinney, TX. In addition to selecting the right policy, you will also need to select your beneficiary. 

Understanding Your Options

You may not be aware of how many options you have when selecting a beneficiary. In addition to selecting a person, you can select your estate, a trust, a charitable entity, or a company. You can also choose more than one beneficiary. 

The primary beneficiary, or beneficiaries if you select more than one, will receive your death benefit if they are alive when you pass. A secondary beneficiary will receive the benefit if the primary beneficiary passes before or at the same time that you do. You may also choose to name a final beneficiary, which will receive the benefit of both the primary and secondary beneficiaries have passed. 

Choosing Multiple Beneficiaries and Changing Beneficiaries 

You may choose multiple beneficiaries for both primary and secondary beneficiaries. When you choose multiple beneficiaries, you will choose a percentage that will go to each beneficiary. It’s common for a spouse and children to be named as primary beneficiaries. You can also name a charity, company, or your estate as a beneficiary alongside loved ones. 

Most policies are revocable. This means that you can change the beneficiaries at any time. You may also choose irrevocable beneficiaries. Irrevocable beneficiaries can only be removed with the beneficiary’s consent. 

Life Insurance at Parker Preferred Insurance

There are many things to consider when selecting a life insurance policy and beneficiaries. At Parker Preferred Insurance in McKinney, TX, we are happy to explain all your options so you can make the best decision for yourself and your loved ones.