Something that we don’t like to think about is death. If we think about it, it becomes reality. Unfortunately, those circumstances will arise at some point, and you need to be sure your house is in order. With that said, have you checked your beneficiary designation lately for your Benefits?
· What’s a beneficiary?
A beneficiary is a person or entity you name to receive death benefits, if something were to happen to you.
· Why do I need one?
It’s important to have a designated beneficiary in order for your assets to go where you want/need them to go after death. If you do not name a beneficiary, the funds that you meant for loved ones may not get into their hands immediately.
- What items should I designate beneficiaries for?
- Life Insurance Policies
- Accidental Death & Dismemberment Policies
- Health Savings Accounts (HSA)
- Can I name a minor as my beneficiary?
- Yes, you can name a minor as a beneficiary. However, at the time of your death, if any of the named beneficiaries are minors, a guardian must hold and manage the money until the beneficiary reaches the age 18 or 21, depending on state law.
- What’s the difference between a primary and contingent beneficiary?
- A Primary beneficiary is someone you would name as the recipient of the policy in case of death. A Contingent or Secondary beneficiary is the next in line to inherit the policy, if something should happen to the primary beneficiary.
- How often can a beneficiary be updated?
- You can change your beneficiary any time you feel it’s necessary.
Your Benefits Department holds a wealth of information to ensure that you have all your bases covered. Please contact your Benefits Department for more detailed information.