Naming Beneficiary(Ies)in LIfe Insurance. Should I name that person as the beneficiary of my life insurance or make it payable to my estate and have it distributed according to my will? Does the beneficiary have to be a relative?
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UPDATED: Jul 16, 2021
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When you apply to take out a new life insurance policy, the insurance company requires that the beneficiary (or beneficiaries) have an insurable interest in the insured. Frequently they would be dependents, such as a spouse or children, who would suffer a loss if the insured were to die.
It is usually better to name a person or persons as your beneficiary unless there is a specific reason to designate the estate as your beneficiary – as when you have papers drawn up by a legal professional to control the disposition of the proceeds.
You can name anyone you choose to be the beneficiary. You can also have multiple beneficiaries. Your beneficiary or beneficiaries do not have to be related to you.