The challenge of life insurance is determining who to list as a beneficiary. A spouse is probably the first to be listed, but you may have multiple children or even grandchildren. Single individuals may wish to list siblings on their life insurance. So, how do you decide who gets what?

The More, the Merrier!

While you technically only need one beneficiary, it’s a good idea to have more than one just in case something happens to that person. In such a case, the funds would revert to the estate and go through probate. You could list a primary beneficiary who would get everything and a contingent beneficiary who would receive the benefits should the primary be unable to. Another option would be having beneficiaries split the proceeds. The percentages don’t have to be equal, but all the benefits should be accounted for. You may choose to divide the proceeds per stirpes or per capita. If you divide per stirpes, the proceeds are divided by family rank. Your children would have a larger inheritance than your grandchildren. In a per capita assignment, all beneficiaries involved get an equal share. If your estate is fairly large, you are advised to have an estate planner to help you avoid unnecessary estate taxes.

Contact Berks County Insurance in Reading, PA

Deciding who can benefit from your life insurance is tricky, but getting life insurance to start with can be easy with the right agency. If you are in the Reading, PA area and are in the market for life insurance, please get in touch with Berks County Insurance. Our knowledgeable and helpful agents are ready and willing to assist you in any capacity.