Posted : 01/01/2011
You can name any legally competent person as a beneficiary of your life insurance policy, including your spouse, children, other relative or friend. You can also name an entity as a beneficiary, such as a charity, church or trust.
It's a good idea to designate a contingent beneficiary as well as a primary beneficiary. If your primary beneficiary cannot be located or dies before you do, the life insurance proceeds go to your contingent beneficiary. Be very specific when naming a beneficiary; include full name and Social Security number to avoid any confusion.
Other important factors
Here are a few additional notes about designating a beneficiary:
It's a good idea to review your beneficiary designation regularly to make sure it still reflects your wishes. Major life events such as births, deaths or marriages are good times to confirm you have the appropriate person or entity designated as the beneficiary of your life insurance policy.
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