You hear us talk about beneficiaries from time to time. The concept isn’t a new one.
But what exactly is a beneficiary? And how should you go about selecting them?
On the surface level, a beneficiary is a person who derives advantage from something, especially a trust, will, or life insurance policy.
But what you may not know is that there are different kinds of beneficiaries: Primary, Irrevocable, Revocable, and Contingent.
Speak to your financial professional for more information on the differences between them.
As far as selecting a beneficiary – for a lot of financials, like 401(k)s, not having a named beneficiary can lead to funds being stuck in probate. And the last thing you want is your money stuck in the court systems.
So, make sure you are naming beneficiaries for all funds. To assist you, most financial services companies will provide something, whether that be a website or a form, where you can name your designated beneficiary. That information will then be stored with your policy or account information.
Your financial advisor can help you navigate the ins and outs, dos and don’ts associated with naming a beneficiary, eliminating any of the guess work.
Feel free to contact me with questions!
