Choosing your beneficiaries on standard or whole life insurance quotes policies
seems as though it would be a simple undertaking, but it actually
need to be planned very diligently. Who should you choose? The person
closest to you may be your first thought but read on.
You need to make sure that your family has everything thing they
need in their time of grief. You also want to keep the court out of your estate and prevent your assets from being taken away due to debt or unpaid bills.
Generally, if you
name a beneficiary in your standard/whole life insurance quotes policy, the money goes directly
to that person or organization and does not go through probate. This
avoids federal estate tax payments. However, if you name your estate as the primary
beneficiary, the proceeds of your whole life insurance quotes policy will become part of your estate,
and will become subject to federal estate taxes.
Your will should
be clear and precise, with detailed terms, of exactly who is to have
what. So updating a policy the moment something important changes is
a must. If someone contests the will, your beneficiaries will have the
pain of dealing with your estate in probate. This is a time consuming
and painful process for grieving loved ones to undergo.
The verbiage you use in your whole or standard life insurance quotes policy should NOT be "husband",
"son", "child" but instead use the person'(s) FULL
name on all documents. If you name your estate as a beneficiary then
your estate will more than likely go through probate. So make sure to
list full names on your life insurance policy.