In my mid-twenties, my first boyfriend took me the place to find meet his family. After meeting his mother and three siblings, it was clear his mother was doing the best she could but wasn't in a position to adequately offer her children. That's because she and her children existed on Social Security. My boyfriend's mother immigrated towards the U.S. and never learned English. Therefore, she stayed the place to find raise her children rather than were built with a paid job. She relied on her husband, and then he died.
She was his second wife, whom he met after his divorce years prior. The main reason she and her kids struggled financially was that her husband neglected to update his $500,000 life insurance policy for many years. Consequently, his ex-wife and her children were awarded the proceeds from his life insurance policy as he died.
This sad story is common. Many individuals either forget to mention or forget to update beneficiaries on accounts, investments, life insurance coverage and much more. It's important to note that beneficiary designations supersede wills because it, too, is a legally binding document. Therefore, should there be a contradiction forwards and backwards as to who's awarded life insurance proceeds or inherit a merchant account, the person beneficiary designation has precedence. Incorrect beneficiary designations can create chaos for all those left behind.
Why LGBT people should designate beneficiaries on life insurance
There are generally financial and emotional reasons to list beneficiaries in your life insurance policy.
From an economic standpoint, when you designate a beneficiary, like a spouse or perhaps a partner, it's likely that they
