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What is a beneficiary?

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A beneficiary is the person or entity you name in a life insurance policy to receive the death benefit. You can name:

  • One person
  • Two or more people
  • The trustee of a trust you’ve set up
  • A charity
  • Your estate

If you don’t name a beneficiary, the death benefit will be paid to your estate.

Two “levels” of beneficiaries

Your life insurance policy should have both “primary” and “contingent” beneficiaries. The primary beneficiary gets the death benefits if he or she can be found after your death. Contingent beneficiaries get the death benefits if the primary beneficiary can’t be found. If no primary or contingent beneficiaries can be found, the death benefit will be paid to your estate.

As part of naming beneficiaries, you should identify them as clearly as possible and include their social security numbers. This will make it easier for the life insurance company to find them, and it will make it less likely that disputes will arise regarding the death benefits. For example, if you write “wife [or husband] of the insured” without using a specific name, an ex-spouse could claim the death benefit. On the other hand, if you have named specific children, any later-born or adopted children will not receive the death benefit—unless you change the beneficiary designation to include them.

Besides naming beneficiaries, you should specify how the benefits are to be handled if one or more beneficiaries can’t be found. For example, suppose you have two children and you name each one to receive half of the death benefit. If one of the children dies before you do, do you want the other child to get the entire death benefit, or the deceased child’s heirs to get his or her share?

If the death benefit goes to your estate, probate proceedings could delay distributing the money, and the cost of probate could diminish the amount available to your heirs.

Choosing beneficiaries, and keeping those choices up-to-date, is an important part of owning life insurance. The birth or adoption of a child, marriage or divorce can affect your initial choice. Review your beneficiary designation as new situations arise in order to make sure your choice is still appropriate.

Evaluate Your Insurance

Tags: , , , , , , Auto Insurance

Have you been carrying the same coverage amounts you’ve had for years? We can help you evaluate whether it’s to you benefit to change them to reflect your current situation. We may also be able to help you save money with  auto discounts. Whether it’s helping to secure your future, explaining new protection and rewards or looking for ways to save you money, we can help you get auto insurance coverage with your needs in mind.

Home Owners Insurance

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2222498At TX Insurance Pro, we carry a wide variety of homeowners insurance carriers with competitive rates saving you money on homeowners insurance. Fill out the form below to receive a free no-obligation estimate. Our agency represents A rated carriers including The Hartford, Travelers, Kemper, and Safeco.

How to Save on Commercial Auto Insurance in the Off-Season

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Ever mowed a lawn in January? Or plowed a snowy driveway on a hot July day? If you own and operate a seasonal business, chances are you aren’t working in the off-season, so the insurance you carry should be different than what you carry in-season.
Commercial Vehicle

Leading commercial auto insurers like Progressive offer seasonal insurance for businesses like landscapers, snowplow drivers, ice cream truck owners, and more. These coverages allow you to customize your commercial auto insurance based on when your business is running on all cylinders — and when it’s not.

Progressive offers these tips for getting the most out of your policy in the off-season:

  • If your vehicle will be parked during the off-season, you may think you should cancel that vehicle’s insurance during that time. But if you’d like to protect your vehicle and still save a little money, just switch your insurance to a Comprehensive-only policy. This will give you basic protection against incidents like vandalism, theft, falling tree branches and hail.
  • A Comprehensive-only policy also gives you the bonus of having continuous insurance coverage. If you drop your insurance completely, you may pay significantly more to get a new policy when in-season rolls around because most insurance companies want to see proof of continuous coverage.
  • If you plan to drive your work truck or other vehicles for personal use during the off-season, let your insurance carrier know. They can adjust your policy to reflect personal use, which can be less expensive while still providing coverage.

A local independent agent can help you determine which coverages are right for you and your business.