Texas TX Life Insurance Question

Reader’s Question:

I want to purchase a whole life insurance policy in Texas. Can the policy have multiple beneficiaries?

Carole

Richardson, TX

Hi Carole,

Life insurance can be what you want it to be. You can select single or multiple beneficiaries. Your life insurance will benefit the person, organization or entity that you designate. You can even select a combination of those categories. Perhaps you want to benefit a person and a charity. Or, maybe you want a portion of the life insurance death benefit for an heir and the remainder to a trust for another party. I think these are your most viable options.

Usually life insurance policy owners name one or more persons as the beneficiary, but sometimes the beneficiary is a trust, a charity or even the owner’s estate. In the event you have not selected a beneficiary, your estate will receive the life insurance policy’s stated death benefit.

You can add, subtract or change beneficiaries at any time. It is important to be accurate with your designations. Make sure your life insurance policy clearly identifies your wishes. It’s a good idea to include social security numbers to persons and clearly identify other entities.

Sometimes life insurance policy owners designate contingent beneficiaries. These contingent beneficiaries only receive benefits if your primary wishes cannot be fulfilled. Consult with your local insurance agent in Texas to specify your wishes.