Question 1

How Can I Be Sure That My Life Insurance Policy Is Divided up Between My Beneficiaries on a per Stirpes Basis?

Accepted Answer

While filling out the beneficiary designation form, indicate the preferred per stirpes approach on your life insurance policy. Note that the beneficiaries in a per stirpes contract should be one individual and not a group of people. Moreover, you should use the word “descendants.” Your life insurance agent will be happy to assist you with the matter in case you have any doubts.

Question 2

If I Have Some Unpaid Debts at the Moment of Death, Can Creditors Claim My Death Benefit?

Accepted Answer

No, creditors cannot claim your death benefit. However, if your death benefit is being paid out through your estate, then it will also be paid out to your creditors through the process we refer to as probate. The best way of ensuring that creditors don’t claim your death benefit is to list your beneficiaries and keep updating your policy as time passes by.

Question 3

What if there’s a Need to Change My Beneficiary?

Accepted Answer

To make changes to your beneficiaries, you need to contact your insurance providers and request a change beneficiary form. Once you receive the form, make sure you fill it out completely and accurately. Be sure that you write the beneficiaries’ names correctly. Also, include their social security numbers. By listing all of these details, your insurance provider will be able to make the respective payments easily after you pass away. Finally, don’t forget that making changes to beneficiaries is an essential part of keeping your life insurance policy up to date.

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