How to List Beneficiaries for your Life Insurance

When you are getting your life insurance, you would encounter in the application form a list that you need to fill out where it asked for beneficiaries. 

But what are beneficiaries? A beneficiary is any person or an organization, in some cases, who are eligible to receive distributions from a trust, will, or life insurance policy. Almost any person can be named as a beneficiary, yet your insurance provider may restrict who you can name as a beneficiary.

So how can to list your beneficiaries for your life insurance? here are a few points to consider in listing your beneficiaries.

1. Immediate family members

Naturally, immediate family members, children, or spouses are the usual choice for beneficiaries since they are directly affected if the person faced impairment or death. In the case of children, a competent guardian is named for their welfare and estate or a creation of a trust. 

2. Special needs and other lifelong dependents

It is also possible to name someone who will need financial support throughout their lifetime as your beneficiary. Establishing a special needs trust and naming the trust as beneficiary is one way to channel your assets or life insurance death benefit to someone with special needs without triggering laws that may work against them.

3. Charities and Organizations

Many people would opt to name different charities and other cause-related organizations as beneficiaries. This happens for insurers who are committed to their causes and wished to continue their support even after the insuree’s passing or impairment.

In time, it is important to keep your beneficiaries updated in case you’ll renew or make any changes in your life insurance plan and policy.