Many consumers are unsure how to select a life insurance beneficiary, the recipient of the life insurance policy benefits in the event of a policy holder's death.
In a piece for InsuranceNewsNet, Scott Purves, president of Purves and Associates Insurance Agency, recommends consumers ask their life insurance providers questions regarding the selection of a beneficiary to help determine who would be the best candidate. For example, many consumers ask if their spouse can be the beneficiary. Questions like these can be discussed with providers.
If a consumer has been selected to be a friend or family member's life insurance beneficiary, that individual should make sure they understand all the instructions and steps that need to be taken when the policyholder passes away. This is a delicate topic, so beneficiaries should approach policy holders diplomatically when inquiring about the benefits, Insure.com reported.
All questions should, however, get answered so there is less confusion the benefits must be claimed. Many policyholders fail to discuss the process with their beneficiaries prior to their passing, leaving the beneficiaries with little instruction as to how to claim the benefits. This can bring anxiety to the policyholder, which can easily be avoided, the website reported.