Maintaining a good life insurance policy is one of the most important steps you can take to protect your loved ones. But when it comes to life insurance, many people find they are overwhelmed with questions. When you establish your policy, you’ll need to make some important decisions about choosing your beneficiaries. Making the best decisions will help protect your family’s future financial stability and provide for them if you’re gone.
At Value Plus Insurance, we specialize in connecting Minnesota and Wisconsin residents with the best policies for their needs. In this blog post, we’ll discuss how beneficiaries work when establishing your life insurance policy.
Life Insurance and Beneficiaries
In the event that your life insurance needs to be disbursed, this will usually occur before probate. This helps make sure your final expenses can be covered while giving your family financial security in your absence. Because your insurance money isn’t going to follow the rest of probate, you get to control where it is distributed by establishing the beneficiaries.
Here are a few things you should know:
1. It’s Possible to Set Multiple Beneficiaries.
If you’re worried about leaving your life insurance to one person, you can put your mind at ease. If you want to divide your insurance policy into percentages among several beneficiaries, this can be arranged. For parents of multiple children or those who wish to divide the money among their spouse and dependents, this may be the best approach.
2. Your Beneficiaries Can Be Changed.
Sometimes the circumstances of our lives can change. One of the most common mistakes policyholders make is forgetting to update a policy if there’s been a change in their marital status or dependents. However, you can change your beneficiaries at any time.
3. You’ll Need to Establish a Trust for Minors.
If your beneficiaries are minors, you’ll need to establish a trust on their behalf. That’s why many policyholders end up leaving their policy to their spouse to be distributed by them. However, if you pass on at the same time as your spouse, this could cause problems.
Contact Your Minnesota Life Insurance Company
Making the right decisions when it comes to your life insurance policy can be tricky. But with an experienced team of life insurance agents behind you, it can be less so.
At Value Plus Life Insurance, our personal insurance pros know how important it is to protect your family and we’ll work with you to make the best decisions for yours. Speak with our insurance agents by calling us at 952-435-0550, or contact us to discuss the best policy options for your family.