by Richard Schlueter, Vice President Insurance Services, Wealth Enhancement Group

Have you checked the beneficiary designations associated with your private and group life insurance plans lately? If the answer is no, the slow summer months present a great time to go through this exercise.

Did you know…

• that even if your will or trust designates a beneficiary to your life insurance policy, the beneficiary designation filed with the insurance company is the one that will be honored?
  
  
• that if your primary beneficiary predeceases you and you have not named a contingent beneficiary that the beneficiary becomes your estate and consequently becomes a probatable asset?
  
  
• that if you have multiple beneficiaries and have not indicated "per stirpes" or "per capita" the proceeds of the policy could be paid-out counter to your intentions.

Keep in mind…

• that your beneficiary designation form must be on file at the insurance company in order to be valid. Make sure the insurance company can produce a copy of your beneficiary designation and make sure you have a copy in your home files as well. A copy should also be provided to your financial advisor.
  
  
• that in almost all cases a contingent beneficiary should be named.
  
  
• that if you have multiple beneficiaries, you should understand the difference between per stirpes" and "per capita." Then make sure the insurance company has your intentions filed correctly.

Always consider a life insurance beneficiary review when any of the following life events take place: marriage, divorce, birth of a child or grandchild, adoption, death, and so on.