Life insurance helps many people to make the lives of those they leave behind better. When you buy an insurance policy and name a beneficiary, the cash proceeds of your policy go to that person after you die. But you are not limited to naming a person as a beneficiary.  Here’s what you need to know before writing a name to your policy.

Typically, people name a spouse or a child/children as the beneficiary. At Cross Creek Insurance, where we serve Hope Hills, NC, we will let you know if instead of naming a child who has not reached the age of consent, you should designate a legal guardian for that child. When you want your spouse to get the benefit of your life insurance, be specific in naming  the person rather than writing "spouse." Divorces and remarriages do happen.

Perhaps your philanthropic spirit makes you want to name a charity as the beneficiary. Make sure that the charity will accept the gift, and find out if it is a 501(c)(3) organization. Otherwise, the group may be subject to taxes. If you have a partner in the business you own in the Hope Hills, NC area, a life insurance policy can help your business survive. Name your co-owner as beneficiary. 

You cannot name a pet as a beneficiary because it’s considered property and cannot sign legal documents. However, you can name as beneficiary a person you trust to take care of your animal.  An alternative is to the set up a trust for your non-human companion. Then buy a life insurance policy and name the trust as beneficiary. Talk to us at Cross Creek Insurance so the people you care about can benefit from your life insurance policy.