Although it’s not a subject most people want to discuss, it’s a very vital one–who your life insurance beneficiary will be. For people with a spouse and no other relations or who have only one child, the answer might be simple. For everyone else, it’s vital to take the time to compare your options because this is the most important decisions you’ll make when opening your policy with Safechoice Insurance Agency, serving Rochester, MN and the surrounding area.

Circumstances of Prospective Beneficiaries

Before you deem someone as your beneficiary, make sure you consider their financial situation. Depending on what they owe, it’s possible the government could seize the money, and your beneficiary won’t receive any of the money. If your potential beneficiary collects social security or any government assistance, your beneficiary may no longer qualify for benefits because of the money they inherit from you. This could harm them in the long run financially. 

Who it Benefits

When you’re deciding on a beneficiary, think about who gets the money and how they would probably use it. Do you really want to appoint someone as your beneficiary if they’re just going to blow the money? Or would you rather deem someone as your beneficiary who will use it to pay off their home, take care of their children or expand their business?

Your Children

If you have underage children, you automatically think of them first when it comes to after you pass. While making sure they’re financially taken care of is vital when planning, the money may not be able to go to them until they’re 18. Therefore, you should make sure the money goes to someone who you know will put your children’s best interest first and see they receive the money. 

To get a quote for life insurance or open a policy with Safechoice Insurance Agency, serving Rochester, MN and the surrounding area, contact us today at 507-280-9282.