Life insurance proceeds pass to whomever you have named to receive those benefits; that person is the beneficiary. The insurance company will have a record of the beneficiary you chose when you purchased your policy. You also should keep a record of the current beneficiaries of each life insurance policy.
You have the option to change the beneficiary at any time. You must tell your insurance company in writing if you wish to do this. Most insurance companies provide a form to change the beneficiary. It is also wise to name another person as an alternate beneficiary in case your first beneficiary dies before you do. A beneficiary may be the personal representative of your estate (though this can have unfavorable consequences) or trustee of a living trust. All beneficiary designations should be coordinated with your overall estate plan since the insurance company will pay the policy proceeds to the named beneficiary, even if your will says someone else should receive the money.
This article published by the Colorado Bar Association.
Disclaimer: Information on this website is not intended to be legal advice. View Full Disclaimer