Life insurance helps protect your family’s financial security. Some people have coverage through work, while others buy individual life insurance policies.

Regardless of what type of life insurance you have, there’s one small detail that, if overlooked, can cause one big headache: naming a beneficiary of your policy.

A beneficiary is the person who receives the proceeds of a life insurance policy when the insured person dies. If you select your spouse as the policy beneficiary, he or she will be paid a benefit at your death. Besides individuals, beneficiaries can be a company, charitable organization or legal entity called a “trust”.

Selecting a beneficiary enables you to take advantage of the numerous benefits life insurance can provide your family. Unfortunately, many people decide hastily or even forget to select a beneficiary.

Avoid These Traps

Not naming a beneficiary – or doing so improperly – can rob loved ones of intended benefits, cause legal complications or create unexpected tax bills. For example, naming a spouse as beneficiary – a common practice – may be unwise if he or she is unprepared or unable due to illness to take over the family finances following your death.

What if your spouse is the beneficiary and then you divorce? If you forget to change the beneficiary to your new spouse, all the proceeds may go – against your wishes – to your former spouse.

Appointing young children as beneficiaries is also risky. A court-appointed legal guardian will hold and manage the money until they reach 18 or 21 years old, depending on state law. This process generally involves legal formalities, delays and expenses. As a parent, you may be uncomfortable knowing that once your children reach the age of majority, they will be entitled to receive the full proceeds to spend as they wish.

If you forget to name a beneficiary, life insurance proceeds go into your estate and can be subject to estate taxes. One way to address potential problems is by designating a trust as beneficiary of your life insurance policy.

When filling out a beneficiary form, make sure you precisely indicate the beneficiary’s name, social security number, and relationship to you. If you name “my spouse” as the beneficiary and then divorce and remarry, a court may have to decide which spouse you meant.

Because naming a beneficiary is so important, it’s a good idea to ask a knowledgeable insurance or legal advisor for help with the decision.

I’ve teamed up with Linda Kaare at Parmenter O’Toole here in Muskegon, Mi. She’s an excellent Estate Planning Attorney. You can contact her at lsk@parmenterlaw.com.

For the Life Insurance, please contact me at my Farm Bureau Insurance office located at 1500 Whitehall Rd, Muskegon, Mi. 49445. For an appointment, call me at (231) 744-9099.

www.muskegoninsuranceagent.com

Make this the month you set an appointment for an insurance review

Your Farm Bureau Insurance agent (I) would love to have a brief meeting with you. It won’t cost you anything. In fact, it might even save you money.
It’s called an insurance review, and it’s a vital part of the service your agent should provide for you.
Fall is a great time to review your overall insurance program. Life slows down a little after a busy summer and the changing leaves cause us to reflect on making changes in our lives. So turn over a new leaf. Start by setting up your insurance review with me.
Why is a review so important?
Think about the risks you face, the priorities in your life, and the future you envision. We need to make sure your Farm Bureau Insurance coverages are working at full strength to protect you in the best way possible.
A review will give you the peace of mind that comes from knowing that:

• Everything is up to date and you have all the insurance protection you need.
• There aren’t any gaps in your coverage.
• You’re getting the most value for your insurance dollar.
• You’re taking advantage of available credits and deductible options that can lower your cost.
• Your insurance reflects any changes in your life or circumstances.
• Your financial security is protected.

One insurance review can do a lot for you…and it won’t take long. Call your Farm Bureau Insurance agent for an appointment today.
www. muskegoninsuranceagent.com.

Why Devote a Month to Life Insurance Awareness?

These are unsettling times. Over the past year, almost every pillar of our financial security has been shaken, one by one. The bursting of the real estate bubble, the precipitous decline in the stock market, a rapid spike in job losses. Now more than ever, Americans are searching for ways to maintain basic financial security.

One source of financial security still stands strong, however, and that’s life insurance. It continues to do what it was designed to do – serve as the foundation of your family’s financial security.

If you own a term life policy, the death benefit it would pay if you died tomorrow is unchanged from last week, last month or even last year. If you own a whole life policy, your death benefit is also guaranteed, and over the past year your cash values have actually grown, not declined. In this tumultuous economy, you can take comfort in knowing that life insurance – whatever type you own or intend to buy – can provide some certainty and stability at a time when both are in short supply.

To make sure Americans are reminded of the need to include life insurance in their financial plans, the nonprofit LIFE Foundation coordinates Life Insurance Awareness Month. Each September, LIFE is joined in this educational initiative by more than 100 of the nation’s leading insurance companies and other industry groups.

Almost everyone knows they need life insurance, but almost no one wants to buy it. That’s understandable. No one likes to think about dying, so we procrastinate, make excuses, or hope that we’ll be one of the lucky ones that lives a long life. But what if you’re not one of the lucky ones? What if you haven’t planned properly? The amount of life insurance you own is likely to determine whether those you love will have a financially secure future or be confronted with years of financial hardship.

Our website is the leading source of objective information about life insurance. We encourage you to spend a few minutes learning more and trying our interactive tools like our Life Insurance Needs Calculator. If you determine that you have a need for coverage, we strongly urge you to act by contacting an insurance professional who can help you safeguard your family’s financial future.
You can find out more about me and the life insurance I offer at www.muskegonlifeinsurance.com of just call me at (231) 744-9099

Life insurance helps protect your family’s financial security. Some people have life insurance through work, while others buy individual life policies.

Regardless of what type of life insurance you have, there’s one small detail that, if overlooked, can cause one big headache: naming a beneficiary of your policy.

A beneficiary is the person who receives the proceeds of a life insurance policy when the insured person dies. If you select your spouse as the policy beneficiary, he or she will be paid a benefit at your death. Besides individuals, beneficiaries can be a company, charitable organization or legal entity called a “trust”.

Selecting a beneficiary enables you to take advantage of the numerous benefits life insurance can provide your family. Unfortunately, many people decide hastily or even forget to select a beneficiary.

Avoid These Traps

Not naming a beneficiary – or doing so improperly – can rob loved ones of intended benefits, cause legal complications or create unexpected tax bills. For example, naming a spouse as beneficiary – a common practice – may be unwise if he or she is unprepared or unable due to illness to take over the family finances following your death.

What if your spouse is the beneficiary and then you divorce? If you forget to change the beneficiary to your new spouse, all the proceeds may go – against your wishes – to your former spouse.

Appointing young children as beneficiaries is also risky. A court-appointed legal guardian will hold and manage the life insurance proceeds until they reach 18 or 21 years old, depending on state law. This process generally involves legal formalities, delays and expenses. As a parent, you may be uncomfortable knowing that once your children reach the age of majority, they will be entitled to receive the full proceeds to spend as they wish.

If you forget to name a beneficiary, life insurance proceeds go into your estate and can be subject to estate taxes. One way to address potential problems is by designating a trust as beneficiary of your life insurance policy.

When filling out a beneficiary form, make sure you precisely indicate the beneficiary’s name, social security number, and relationship to you. If you name “my spouse” as the beneficiary and then divorce and remarry, a court may have to decide which spouse you meant.

Because naming a beneficiary is so important, it’s a good idea to ask a knowledgeable insurance or legal advisor for help with the decision. I’ve been helping people with life insurance decisions for almost 20 years. Feel free to contact me at (231) 744-9099 or start with my webesite at www.muskegonlifeinsurance.com