Life Insurance: What Happens If There Are Co-Beneficiaries?

 

The purchase of life insurance is a common financial planning tactic for North Carolina families, providing financial protection for survivors when the family breadwinner has passed.  Your Greensboro life insurance coverage is something that can mean a world of difference to as husband or wife left behind as well as to children who may require financial support until they're able to support themselves.

A primary purpose of life insurance, whether it's whole life, term life or universal life, is to allow the beneficiary or beneficiaries to have continued financial support after they have lost the person who was previously providing that financial stability.  

The benefit received from a life insurance payout may be used wherever it's needed, whether that means paying off outstanding loans such as a home mortgage or taking care of funeral expenses.  As a father of small children, you may be taking out a Greensboro life insurance policy to ensure that, should you pass away unexpectedly, your family may continue living in a fashion to which they've become accustomed and have the funds needed to send the kids to college.

Beneficiaries

Part of taking out a life insurance policy is choosing and naming a beneficiary or beneficiaries.  This could be: 

• A person or persons
• Your estate 
• A charity
• A trust
• A business (as in key person life insurance)

The beneficiary is the person, persons or entity that will receive the proceeds of your life insurance policy when you pass.

There are two types of beneficiary designations:

Primary beneficiary - the person, persons or entity that will receive the proceeds of your life insurance policy at the death of the policyholder

Contingent (or secondary) beneficiary - only entitled to receive proceeds from the policy if the primary beneficiary dies before the policyholder

Multiple Beneficiaries

You may name more than one primary beneficiary if desired, in which case they will receive either equal portions or a stated specific percentage of the death benefit when you pass.  There are two ways to select multiple beneficiaries:

Per Stirpes - beneficiaries are designated by lineage, with policy proceeds being equally divided among beneficiaries and/or their surviving children

Per Capita - policy proceeds are equally divided among all beneficiary survivors.  Click here for a more detailed explanation of Per Stirpes and Per Capita designations.

If a beneficiary dies before the policyholder, he or she must be renamed as soon as possible.

What Can You Do to Reduce Homeowners Insurance Costs?

 

Saving money on expenses has universal appeal, especially when you can save on something you're required to purchase.  Statistics show that approximately 95% of all homeowners in North Carolina maintain homeowners insurance coverage, so ways to reduce homeowners insurance costs should be widely welcomed.  We'll present you with a comprehensive list of tips for reducing your home insurance costs starting today.  Choose your Greensboro homeowners insurance policy with the goal of getting the best for the least.  Try these tips:

Seven Ways to Save on Your Greensboro Homeowners Insurance Coverage

1.  Most experts agree that the first and most important tip for saving on any insurance policy is to shop around.  It's recommended that you obtain no less than three quotes from companies rated highly for service and financial stability.  Consult A. M. Best and/or Standard & Poor's for this information.  Consider using an insurance broker who has access and insight into multiple providers.  Price is important but other factors such as service and stability should also figure in.  Shop around when buying a new Greensboro homeowners insurance policy or when renewing your existing coverage. 

2.  An immediate reduction in your homeowners insurance rate can be obtained by simply raising your deductible amount.  Insurance companies typically recommend a deductible of $500, which is the amount you're required to pay our of pocket when you make a valid claim.  Higher deductibles mean lower premiums and raising your deductible from $500 to $1000 could save you as much as 20% on your policy cost, depending on your insurer.

3.  When deciding how much home insurance to buy, don't include the value of the land your house sits on.  Land isn't subject to the same perils as your home and other structures on your property.  Also, calculate how much coverage you need by the cost it would take to rebuild your home rather than its current market value.

4.  Bundling a variety of policies such as homeowners, auto and umbrella all with one insurer can save you as much as 15% on these policies.

5.  Improving your home's security with smoke detectors, burglar alarms and deadbolt locks can save you 5% or more on your home policy.

6.  Most insurers offer a variety of discounts for which you may qualify.  Often, however, you won't know about these unless you ask.

7.  Review policy limits for your personal property coverage to make sure you're not paying for coverage you don't need.