You name a beneficiary when you purchase a life insurance policy. This designation lets the insurance company know who should receive the proceeds of the policy. Keeping your beneficiary designation current is key to ensuring your life insurance benefits are paid as you desire. By not updating your beneficiary designation, your benefits may go to your estate instead of to those who need it the most.
When life circumstances change, be sure to review and verify your life insurance beneficiary designation. When should you review beneficiary designations? Here are a few situations to consider: