Naming Beneficiary(Ies)in LIfe Insurance. Should I name that person as the beneficiary of my life insurance or make it payable to my estate and have it distributed according to my will? Does the beneficiary have to be a relative?
Free Insurance Quote Comparison
Secured with SHA-256 Encryption
UPDATED: Sep 15, 2020
It’s all about you. We want to help you make the right legal decisions.
We strive to help you make confident insurance and legal decisions. Finding trusted and reliable insurance quotes and legal advice should be easy. This doesn’t influence our content. Our opinions are our own.
Editorial Guidelines: We are a free online resource for anyone interested in learning more about legal topics and insurance. Our goal is to be an objective, third-party resource for everything legal and insurance related. We update our site regularly, and all content is reviewed by experts.
When you apply to take out a new life insurance policy, the insurance company requires that the beneficiary (or beneficiaries) have an insurable interest in the insured. Frequently they would be dependents, such as a spouse or children, who would suffer a loss if the insured were to die.
It is usually better to name a person or persons as your beneficiary unless there is a specific reason to designate the estate as your beneficiary – as when you have papers drawn up by a legal professional to control the disposition of the proceeds.
You can name anyone you choose to be the beneficiary. You can also have multiple beneficiaries. Your beneficiary or beneficiaries do not have to be related to you.