The beneficiary of the life insurance will be that person or persons who have been designated by the insured and who will receive the payment of the benefit agreed in the policy, in the event of his or her death.
The objective of life insurance is to insure a certain capital to cover future unexpected situations , and to guarantee the economic tranquility of the insured person and their family members. It is about that, when the time comes, your relatives and friends do not have unexpected financial problems, such as extraordinary expenses or mortgage loans that they must pay, because it will be the insurer who will take care of the coverage of these risks.
Life insurance not only acts in the event of a death, but also in the event of serious accidents or illnesses that could lead to an inability on the part of the insured to continue with their work and personal life normally.
Beneficiaries of life insurance
And in the event of the death of the insured, these policies contemplate the figure of the beneficiary of the life insurance . But who can collect life insurance? Who can be the beneficiary of this type of insurance? The policyholder must answer this question, because it will be the person who designates the beneficiary or beneficiaries of their insurance.
Anyone can have the status of beneficiary of life insurance , regardless of whether or not they have a family relationship with the insured. In addition, the insured may modify his decision as many times as he wants, during the time that the agreement with the insurer is in force. To do so you must
Designation of beneficiaries in life insurance
The beneficiaries of the life insurance can be designated by the insured expressly (with names and surnames), or generically (when the insured only indicates the relationship of the beneficiaries, that is, designating a spouse, children, nephews …). It is important to bear in mind that the beneficiary must know that this policy exists and know the data related to it in order to inform the company in the event of a claim.
If you do not designate the beneficiaries of your policy either generically or expressly, the so-called order of priority that has been established in the policy and that you will have signed when contracting the insurance will be applied . According to this order, the beneficiary in the first place will be the surviving spouse (the person who is the spouse of the insured person at the time of death, not when the policy was signed). If this is missing, the beneficiaries will be the surviving children of the insured in equal parts . In the absence of children, the beneficiaries will be the parents of the insured (in equal parts or the survivor for the entirety). If neither of these cases is true,the legal heirs of the deceased will be the beneficiaries of the life insurance.
Domestic partner as beneficiary of life insurance
When it comes to being a beneficiary of life insurance, being a spouse or a common-law partner is not the same . These two figures are still not comparable for all purposes, so if you want your partner to collect the life insurance, you will have to expressly designate them , that is, with their first and last names. Because if you use the generic name of “my common-law partner”, the insurer could not compensate her and the courts could support this decision.
In addition, in these cases it will not be enough to indicate it in the will , you will have to expressly indicate it in the policy or, a letter, by sending a written communication to the insurer.
Keep this in mind when you go to take out life insurance …
- As an insured, you can change the designation of the beneficiaries of your insurance as many times as you wish , but to do so you will have to send a written communication to the insurer or expressly indicate it in your will.
- It is advisable to name more than one beneficiary so that, in the event that they die before you, the capital can be directed to another person.
- If you have named more than one beneficiary, you should know that the benefit you have contracted will be distributed equally among them. If you want another type of distribution to be made, you will have to designate it specifically in your policy.
- Review the benefits in cases of absolute or permanent disability (also by accident), because the capital payment will focus on you as the policyholder. As a general rule, a fixed capital established and guaranteed by this coverage is designated.
- In this sense, check the capital that your policy guarantees . This capital must be calculated based on your family’s expenses so that, if necessary, they can adapt to the new situation with the least possible economic impact.
- If you are going to take out a policy of this type, now that you know who can collect life insurance , remember to review the benefits it offers you. If you are not convinced, you can always turn to a life insurance comparator to obtain cheaper life insurance with the benefits you need. Using a life policy comparator is always a good option to find out the best life insurance and the best insurance companies in the market, and to be able to choose the one that best suits you and your family.