If you have one or more policies in place, ensuring that you have appropriately nominated your beneficiaries and that your beneficiary nominations remain relevant to your needs as and when your circumstances change over time, remains an important part of the estate planning process. However, there are several intricacies when it comes to selecting your beneficiaries which should first be considered, beginning with understanding your intentions for the proceeds of the policy. Here’s what to consider:
Your intentions
Before nominating a beneficiary to your policy, it is important to take a holistic view of your estate plan so that you are clear on what you hope to achieve through the nomination process. Do you want to provide financially for a loved one in the event of your death? Do you want to ensure that your loved ones have immediate access to funds in the event of your untimely passing? Do you want to create liquidity in your estate? Do you want to make provision for minor children? Do you have a special needs child that needs to be cared for if you are no longer around? Your estate planning intentions are critical to mapping out the beneficiary nomination process while taking an all-inclusive view of the policies you have in place.