You buy life insurance to help financially protect the people you love most, should the unthinkable happen to you. That’s why choosing a Beneficiary or Beneficiaries is so important – it’s the person (or entity) who will receive the payout money from your life insurance policy.
Designating a Beneficiary may seem simple, and it generally is. However, an inadvertent mistake can sometimes lead to major headaches for those left behind.
Here are some ins and outs for choosing a life insurance Beneficiary and helping to make sure that the benefit amount goes where you intended:
You may select any person or entity to be a Beneficiary of your insurance policy’s benefit amount, in the event of your death. It can be a family member, a friend or anyone else, or even a charitable organization.
Yes. However, there are additional considerations if you plan to name a child or grandchild as a Beneficiary, and if the child is still a minor (younger than age 18) at the time that Gerber Life receives the insurance claim.
Here are three of the most common, scenarios that may occur when the Beneficiary is still a minor:
Yes. You can list as many beneficiaries as you wish. The division of the benefit amount can be handled in various ways, and you can specify how you would like to have the money distributed. You’ll want to consult with an attorney for your particular situation, but here are some basic examples:
A life insurance policy is a legal contract between the policy owner and the insurance company. As such, it’s important to read your insurance contract carefully and follow the procedure outlined for designating a Beneficiary.
If no life insurance Beneficiary is named on an adult life insurance policy, the benefit amount would be paid to insured’s estate.
Yes. You can change any of the beneficiaries listed on your life insurance policy, at any time, for any reason. Maybe you’ve remarried and want to update the Beneficiary to be your current spouse. Or perhaps you’ve had another child and want to add that child as a Beneficiary.
Whatever the reason, Gerber Life allows you to make changes to your listed Beneficiary at any time by logging into eService account.