Buying Life Insurance When Your Life Is Threatened: Who To Designate As A Beneficiary And Why

19 July 2016
 Categories: Insurance, Blog

It is unfortunate that living in the present day means you will encounter some emotionally and psychologically unstable people in the course of your life. While most everyone attempts to avoid these interactions, the unstable and unhealthy individuals may pursue you nonetheless. As such, it may be a very good idea to purchase life insurance for yourself and your children. When your life might be threatened or in danger from someone unstable (as is often the case with relationships and marriages that have ended), you will need to seriously consider who should be your life insurance beneficiaries and why.

Assigning Life Insurance to Primary, Secondary and Co-Beneficiaries

When you are worried that someone unstable might be the same person to end your life, you will want primary and secondary beneficiaries. Your primary beneficiaries should always be your children, since you will want to provide for them in the event of your untimely death. You will also want to pre-select a guardian for the children that will act in their best interests, accept your children into his or her home, and raise your children as you would have them raised. This same guardian should be assigned the position of co-beneficiary so that the money from your life insurance policy goes to the guardian to help raise the children.

As for secondary beneficiaries, you may want to assign each of your children to their siblings' life insurance policies in the event that one or more siblings meets an untimely death. Though it is an unpleasant thought, it does provide for your remaining children, who may need counseling and support in the wake of their loss. If some of your children are still very little, you may want to discuss trusts with a lawyer in the event that your life is taken and your babies, toddlers and preschool children cannot sign or receive benefits on their own.

Assigning Beneficiaries on Your Children's Life Insurance Policies

This is a trickier situation. You want to be the primary beneficiary on your children's life insurance policies so that you can take care of your remaining children in the event that one child dies. However, if you unexpectedly die, and one or more of your children do as well, the surviving children should receive the benefits. In this case, it would make the most sense to assign a second and third co-beneficiary, usually the person or persons you have chosen as guardians for your children in the event of your untimely death.