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Should You Notify Your Beneficiaries That You Have A Life Insurance Policy?

Funeral Insurance, Term Insurance and Burial Insurance

Should You Notify Your Beneficiaries That You Have A Life Insurance Policy?

Postby Allister » Tue Oct 10, 2017 12:26 am

I am 22 and I get free life insurance from my company. I am not married, am not involved with anyone, and I don't have kids.

My company is making me choose at least one beneficiary because I have to... I was skeptical about that because I don't want to leave anything to anyone. Not to be selfish, but I am afraid that the money will be misused and not put toward a good cause. So I decided my little cousin, so that she could use it for school or something.

Do I have to notify her? Is that a good Idea? Can't I just make myself beneficiary so that if anything happens, the money goes to my bank account and then it can be used to pay bills that I left behind?
Allister
 
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Should You Notify Your Beneficiaries That You Have A Life Insurance Policy?

Postby Selwin » Tue Oct 10, 2017 5:43 am

1) many states have VERY complex laws about naming a minor as a primary beneficiary.

2) you don't need to notify the cousin, but you will need their SSN. That's not just going to be handed over with no questions asked.

3) Good idea.....depends more on how you trust the parents more than the cousin.

4) no you can't have a dead person be the beneficiary. Since you can't sign for the money....it's basically lost money and wasted.
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Should You Notify Your Beneficiaries That You Have A Life Insurance Policy?

Postby Halbert » Tue Oct 10, 2017 11:38 am

No, you don't need to tell them but if you don't how will they know to place a claim? The insurance company will not go looking for them because they won't know if you die if nobody places a claim.

If you don't want to name a person you could name a charity, a church, or other entity. You could even name the funeral home. You could set up a trust that has instructions on what to do with the money and name the trust as beneficiary.
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Should You Notify Your Beneficiaries That You Have A Life Insurance Policy?

Postby Galton » Tue Oct 10, 2017 12:23 pm

No, you received't get any of that money. although, the beneficiaries on a coverage might want to get replaced (if the beneficiary isn't irrevocable) by utilising the owner of the coverage. in the adventure that your husband is the owner of the coverage, he can replace the beneficiary to characteristic you as between the beneficiaries (or thoroughly replace his mom... or he can make his mom contingent, or he can make you contingent... there's some diverse approaches he might want to do it). yet when his mom is the owner of the coverage, he won't be able to make any differences. simply by the indisputable fact that is at present, you isn't entitled to any of his life insurance money.
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Should You Notify Your Beneficiaries That You Have A Life Insurance Policy?

Postby Norberto » Wed Oct 11, 2017 12:40 am

My cousin is 17 and starting college soon. I was thinking leaving her as primary, and her 16 year old sister as secondary. Well, I would hope not to leave any bills behind as I manage my finances pretty well, and I do not expect for something to happen before the younger one is 18. So.. just answer the question. Do I need to tell them? I have their SS and all of the information that I need.

Both of their parents died while they were kids, and that is why I think that they would be the ones to benefit the most if anything happened. Everyone else in my family are well off and have parents supporting them, or are out of college already.
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Should You Notify Your Beneficiaries That You Have A Life Insurance Policy?

Postby Devlyn » Wed Oct 11, 2017 9:41 am

Somebody should know, so they can apply for the money.

You can't be your own beneficiary.
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Should You Notify Your Beneficiaries That You Have A Life Insurance Policy?

Postby Drummond » Thu Oct 12, 2017 8:00 am

Surely, you really have to tell them that they are your life insurance beneficiaries so that if something happens to you, they can claim what they deserved.


You and your spouse are each other?s support. Even if both are earning, you still need to maintain your partner?s lifestyle. If one of you dies unexpectedly, the surviving one needs to recover the financial loss. Life insurance works best at this point. Though it cannot give you a moral support, it can be your source of financial relief. Life insurance also plays a role in maintaining the current lifestyle of your family.
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