What is a Beneficiary & Who Should Be My Beneficiary?

what is a beneficiary

When you buy a life insurance policy, you have to name a beneficiary: this is the person who will receive a payment if you die. If you are purchasing a policy to protect your child, you might think that you should select your child as your beneficiary, but often it is better to choose an adult who can handle the money on the child’s behalf, such as your spouse or another trusted relative. Don’t forget to update the beneficiary of your policy should you split up with your spouse or if your circumstances change in some other way.

Read the next article in this series: ”When should I buy life insurance?”

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