Life insurance beneficiaries
A common life insurance questions asked by customers surrounds who the policy can be payable to as a beneficiary. All insurers will require a valid reason as to why a beneficiary has been named. They will need to be somebody who is financially dependent on the policy holder in some way as they will receive the benefits of the policy upon the policy holder’s death. This can be a spouse, children, a mortgage lender or other financial institution that the policy holder owes money to. Alternatively the beneficiary can be the estate of the policy holder or a trust, these two options require discussion with a tax advisor in order to ascertain whether they are wise or viable.
