In a blog piece for the Times-Herald Record, Laura Medigovich, a certified financial planner and president of M&T Bank in Hudson Valley, said she regularly encounters clients who must deal with confusion due to an outdated beneficiary designation on a life insurance product.
Medigovich said the benefits of a life insurance product may not be allocated to the desired beneficiary if the policyholder did not recently updated their beneficiary designation. Medigovich recommends policyholders regularly update their life insurance policies, benefits, coverage and beneficiary information each year to ensure all information is accurate.
According to Medigovich, consumers must actively remind themselves to update this information, as it is easily overlooked. With each milestone in life such as weddings and children, families are reminded to update wills and trusts. Life insurance, however, can get lost in the mix, resulting in confusion upon death of the policyholder.
Different life changes cause policyholders to update their life insurance information. Tai Lopez, a certified financial planner, says each life insurance policy is also unique to a consumer's needs and situation. Therefore, when first purchasing a life insurance product, Lopez recommends breaking down the options based on age, dependents and health to find an affordable option.