Life insurance, like any insurance, comes with a wide range of terminology that you may not be aware of. There are a few different terms in particular that are important to understand and the beneficiary is one of them. For those living in or around the Sandpoint, ID area, the agents with The Insurance Shop USA can help answer all your questions.
A beneficiary is a person that is going to financially benefit from the policy in the event of your death. This means the person that is going to cash out the policy and get the monetary benefit from the policy. A beneficiary is a person that you name as the one person that can cash out the policy. In most cases, insurance agencies will allow you to name more than one beneficiary in case something happens to the first person named.
So who can be named as a beneficiary? Just about anyone can be named. You can name your spouse, partner, parents, brothers, sisters, uncles, aunts, and so on. There are few regulations when it comes to naming a beneficiary save for the fact that many insurance companies will not pay out to under age children.
When it comes to naming your beneficiary, you should take the time to consider what debts you leave behind and what needs to be paid when you pass. If you feel that your beneficiary may be challenged, you can always have documents notarized to prove their authenticity. No matter who you choose, it is important that you take the time to make sure your policy is filled out correctly and that all the necessary information is present.
For those in the Sandpoint, ID area, the agents with The Insurance Shop USA can help you get your beneficiary paperwork filled out and ready to go.
