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A Few Quick, but Important Questions

Written by Mary Grace Musuneggi, CLU, ChFC, CFS, RFC

Who is the primary beneficiary on your life insurance, group benefits, 401k & IRA?

Now that may be real easy. Spouse, partner, child? But are you sure?

Next question. Can you name the contingent beneficiary on all of the above? Do you even have one? Do you have written copies of the beneficiary forms? If you have two contingent beneficiaries, like two children, what happens if you and one of them die? Are you sure?

A short story: Joe had life insurance. When he was married to his wife, Karen, he designated her as his beneficiary. Joe and Karen got divorced. Joe married Jennifer. Joe died while Karen was still his beneficiary. His life insurance went to Karen. Jennifer was not happy. So sad. Karen was very happy. Probably not Joe’s plan.

For reasons unknown, some people believe that your current spouse is your default on any insurances. Not so. So, I ask again. Who is your primary beneficiary? Who is the contingent? Do you have these in writing?

If not, why not?

Reach out to us if we can help you get the answers.