Beneficiary Life Insurance: What Is It and How Does It Work?

Beneficiary Life Insurance: What Is It and How Does It Work?

Have you designated a life insurance beneficiary? Providing for loved ones upon your death remains a priority for many people. That is why the selection of beneficiaries is important. Failure to do so can bind death benefits to the probate court, and court costs can reduce how much your loved ones receive.

What is a life insurance beneficiary?

A life insurance beneficiary is the person or entity you name to receive the death benefit from the policy. Beneficiaries can be one or more people, the trustee of a trust you set up, a charity or your estate. If you do not name a beneficiary, the death benefit is automatically paid to your estate.

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