JobzkdfNaming beneficiaries is simple but easy to get wrong. A practical guide to primary, contingent and minor beneficiaries.
Primary and contingent
The primary beneficiary is first in line. A contingent beneficiary receives the payout if the primary cannot. Always name both so the money never falls into limbo.
Splitting between several people
Shares must total 100 percent. The beneficiary share splitter shows exactly what each person would receive.
Minors need a plan
Insurers rarely pay large sums directly to children. Consider a trust or a named custodian so a court does not decide for you.
Avoid naming the estate by default
It can slow payment and open the money to creditors. Naming people is usually faster.
Keep it current
Marriage, divorce, births and deaths all change who should be on the form. Check it yearly.
General information only, not financial or insurance advice.