SPECIAL MEMBER MESSAGE

Why it's Important to Name a Beneficiary for Your Life Insurance
By Stephen C. Gordenier, LUTCF

Is your family going to have to borrow money to bury you after illness or accidental death? Will a judge decide who gets your life insurance money after you suffer "the big one"?  If you do not name your beneficiary for your SATA life insurance policy, either of the above scenarios could happen.

When you die everything that you owned at the time of your death becomes part of your estate. Those assets are tied up until your estate is probated by a judge. Everybody's estate goes through probate. That can take from a few months up to several years. In the meantime, the assets are frozen. So unless plans have been made, families often have to borrow or sell personal property to pay for final expenses.

Please remember that if you haven't named a beneficiary, your life insurance proceeds will be paid to your estate and be subject to probate. Once you die, it's too late to avoid that.

Life insurance is unique because it is paid immediately after the death claim is submitted. It is paid directly to the beneficiary. It doesn't go through probate. It usually isn't subject to income tax so it is available to pay final expenses. If you've had the unfortunate experience of dealing with a death, you know how expensive the process can be for the survivors.

You can name any person or entity as the beneficiary of your life insurance. If you live in a community property state, your spouse is probably entitled to at least 50% of the life insurance settlement. Check with an attorney in your state if that is your situation. If you don't have at least a simple will, get one done. Not having a will is going to create a huge headache for the people who survive you. Call our offices to provide this imperative information to our staff in confidence on 727-938-4333