So you have decided on the best final expense insurance company that meets your needs. Now you need to decide who will be the beneficiary of your policy.
This might sound like an easy task but there are some important things you should consider when choosing a beneficiary for your final expense burial insurance policy.
The first thing you need to consider is why you bought the policy in the first place. Was the main concern paying off a specific debt, paying for funeral costs, or some other purpose? You might have bought the policy to leave some money to a specific person, be it a friend or family member. If that is the case then choosing a beneficiary is pretty easy.
However, if your final expense is for another purpose, such as burial insurance or paying off debt, then whoever you choose as your beneficiary should take this into account. Which leads us to the next important consideration, is your beneficiary someone you can trust to carry out your wishes?
Choosing a beneficiary you can trust
Choosing a beneficiary for your final expense insurance policy that you can trust to carry out your wishes is of huge importance. Whoever you name as your beneficiary will be paid the death benefit when you die. Make sure your beneficiary is someone who can handle coming into a large amount of money at once. In other words, make sure they are trustworthy and responsible.
You can assess how responsible a potential beneficiary is by how they take care of their own finances. It might not be in your best interest to choose a beneficiary that has a lot of debt or has other financial issues, such as a tendency to blow their money instead of being frugal and wise with their money.
So who should you choose as the beneficiary of your final expense insurance? We cannot answer that question for you but here are some things to look for in a good beneficiary.
Five things to consider when choosing a beneficiary for final expense insurance
- Consider a beneficiary who truly cares about carrying out your wishes.
When choosing a beneficiary for your final expense insurance policy you want to make sure that the person you choose cares more about you and your wishes then their own selfish pursuits. In other words, don’t entrust your final expense insurance proceeds to a known gambler or spendthrift. Instead, entrust your proceeds to someone who will make sure the money goes to closing out your legacy in a honorable way.
- Consider a beneficiary who has the minimum skills to carry out your wishes.
You do not need a certified public accountant as a beneficiary but you do want a beneficiary who can at least balance a check book. There are some details that go into planning for a funeral, paying off debt, and wrapping up an estate that someone who cannot maintain a budget might struggle with. Your beneficiary should be someone who has the minimum skills required to carry out your wishes for your final expenses.
- Consider a beneficiary who gets along with other family members.
The last thing you want to do is have your beneficiary fighting with your other family members over important decisions. Choose a beneficiary that seeks to build bridges with other family members and not tear them down. Also, a beneficiary that is a good negotiator would be preferable to a beneficiary who rules like a dictator.
- Consider a beneficiary who lives close to you and understands your desires.
You do not want to choose a beneficiary who is out of state if you can avoid it. Sometimes a person choosing a beneficiary will be met with a dilemma—all his or her children live far away. This can be a major issue because the person desires a son or daughter to be the beneficiary. However, location is a huge factor when choosing a beneficiary for final expense insurance. If you have an option between two beneficiaries, one who lives close by and one who lives out of state, choose the beneficiary who lives close by. It will be easier and more efficient for them to take care of your final wishes.
- Consider choosing only one primary beneficiary
A common problem occurs when a mother or father dies and multiple children inherit the proceeds of final expense insurance. Each child has his or her own ideas of how mom or dad would want to be laid to rest. Further, not all children will always be committed to seeing mom’s or dad’s wishes fulfilled. This can cause one child to commit more funds, often dipping into their own funds, to make ends meet. This can cause untold strife within your family and can create separation that takes years to heal, if ever. Instead, choose one primary beneficiary and leave him or her with specific instructions of what to do with the proceeds of the final expense or burial insurance.
Final thoughts on choosing a beneficiary for final expense insurance
Choosing a beneficiary for your final expense insurance policy is an important part of the process for preparing your estate for that inevitable day when you die. Taking the time to think it through will not only bless your family but it will also ensure that your own life’s legacy will be blessed and honored.
JustBuryMe is a burial life insurance agency that focuses entirely on burial and final expense insurance, period!
Our primary goal is to help you secure the coverage necessary so that you can get on with your life with the peace of mind knowing your family will not be left with unnecessary financial hardship due to your advanced planning.
Give us a call today to find out the great burial or final expense plans your qualify for. We are here to serve!
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