Updating your insurance information
More useful information on policy ownership Back to top The other way to ensure that the right people receive the proceeds of your life insurance is to choose a policy that allows you to nominate your beneficiaries.As the owner of the policy, you can nominate which beneficiaries are to receive what proportion of the benefit (must add up to 100% in total).Back to top So, how do you make sure the ones the benefit goes to the right person?One way is to have an up-to-date will as part of your estate plan, which clearly identifies your wishes.Another way is to choose a life insurance policy that contains inbuilt mechanisms to simplify and speed up the payment process.Many modern life insurance policies do this by allowing you to nominate ownership of the policy and also who your beneficiaries are to be.
If you have been married more than once or have children from a previous marriage, this could complicate matters and lead to monies being distributed at the executor’s discretion.
Back to top The other way to ensure your beneficiaries receive the proceeds of your life insurance policy fairly and in a timely manner is to have an up-to-date will in place as part of an overall estate plan.
A will not only directs the proceeds of your life insurance to the right people, but also ensures the correct distribution of the other assets that make up your estate.
If you are the life insured and the sole policy owner, then as mentioned previously, the benefit paid on your death is likely to go to your estate.
To avoid this, you may wish to consider making the person you want to benefit from the policy the owner of the policy.