TermLifeInsurance.com

Can I Change my Beneficiary After the Loss of a Loved One?

When you lose a loved one it can be an overwhelming time of life. While you would love to get back to some semblance of a normal life, it can take a while before you get to that point. To start, you may have had to pick up responsibility for your now deceased loved one. They may not have made any pre-funeral arrangements, especially if they passed in a sudden accident. If you have just made funeral arrangements, then it is one time when our own mortality comes into mind.

Updating Beneficiary Information

If your loved one was your primary beneficiary, and you have a contingent (or secondary) beneficiary, then you may not need to make changes. The reason that most policy holders are encouraged, and will usually choose a contingent beneficiary is because of the possibility of such a scenario occurring. If you are leery of having only one beneficiary listed on your policy, then it may be time to contact the insurance agent and have them bring your new beneficiary forms. It is important that you take care of this as soon as possible, and make sure that it is completed in writing, through an insurance agent.

If you are concerned about costs, know that this is a part of your policy management, and is covered with the costs of your premium. Also make sure that your term life insurance is up to date as well. It is on a term, and therefore will come up after anywhere from five to thirty years for renewal. You can choose to cancel once your dependents have come of age. Some parents choose to buy policies for their children while they are babies, because it is less expensive than insuring them as an adult. In particular, if your child has a genetic predisposition to certain hard-to-insure ailments, then consider this.

While you are tackling updating your term life insurance policy beneficiaries, it is necessary to update your will accordingly, if you have one. If your will specifies your beneficiaries, then you will want to change these as you change your life insurance. This will avoid confusing if you should die. Otherwise, there may be some back and forth among the people involved, and your intended wishes may not be followed, because they were not clearly communicated.

Surprises of Life

While you were not expecting your spouse to pass first, they did. If you had always assumed that you would pass away first you may have set up your entire estate, will, trust, and eve life insurance policy with such an assumption. As far as your life insurance is concerned, this may result in you having set up what is known as an irrevocable life insurance trust. This is one case in which no modifications or cancellation can be performed. The reason for setting up this type of trust are to avoid estate taxes that may apply if your children were named as your beneficiaries. Your spouse would not be subject to such taxes if they were to receive your life insurance benefits.

Changing your beneficiaries after the loss of a loved one may be necessary. Life is full of surprises that challenge our expectations. In some cases, it is recommended that when purchasing life insurance, that you actually purchase one policy for your spouse, and a separate policy for your children. In addition, always make sure that you buy plenty of life insurance to help pay off the mortgage, pay for the kids college, and other higher cost bills, if you can.

YOUR OFFICIAL SOURCE FOR TERM LIFE INSURANCE

Benefits of Term Life Insurance

• Long-term financial safety
• Coverage for any final expenses
• Significant death benefit

Our Commitment

We are committed to helping you make term life insurance shopping simple, fast, and convenient. We will empower you with decision making tools so that you can decide which product is best for you.

Customized Quotes

Fast, Free & Easy

We respect your privacy