Estate planning basics: The importance of updating your beneficiaries
Life is ever-changing. Things such death, marriage, having a child, divorce, and other events can drastically change your life in the blink of an eye. For this reason, it's important that you regularly review your will and life insurance policies to ensure that your beneficiary designations are up to date. Here are some things to think about.
Do I need to change my beneficiary?
The decision of changing beneficiaries depends on many different factors and your individual life/financial situation. The most important thing to remember is that you shouldn't wait to make updates and changes to your will or life insurance policy. If you do, your assets may not be distributed as you may have wished.
Common reasons for changing designated beneficiaries include:
- The birth or adoption of a new child
- A new marriage
- A divorce
- A death in the family
- A designated beneficiary dies
- A move that takes you out of state or out of the country
- When a minor beneficiary reaches the age of 18
- You become the caretaker of an elderly parent or parents
It is crucial that you keep the information regarding your beneficiaries up to date to ensure benefits are paid according to your desires.