3 Ways To Keep More Beneficiary Money


Are You Wasting Beneficiary Money?

beneficiary money
courtesy of speareducation

A tremendous amount of money is left in financial limbo every year because of unreliable beneficiary information. Billions of dollars in life insurance benefits and retirement plan assets are left unclaimed because people do not take beneficiary information seriously enough.

Bad Beneficiary Info Wastes Your Money

There are two reasons why beneficiary money is unclaimed. One, incorrect beneficiary information and two, the beneficiary is unaware that the policy existed with them designated as beneficiary. To avoid leaving money in limbo you need to take both actions very seriously; informing your beneficiaries of your accounts and having the correct beneficiary information on your accounts.

Your Valuable Beneficiary Information

If you are making the same financial mistake about beneficiary information on your accounts, take the time to make corrections.

1- Annual Review

Review the beneficiaries listed on your life insurance and retirement accounts once a year. We all have life changing events and sometimes the people in our lives change also. Divorce and death are the two most common events that have an effect on beneficiaries. If you change jobs and do not rollover your retirement account money do not forget about that account.

2 – Stay Current

Changing a beneficiary designation may be the last thing you are thinking about when a loved one dies or you go through a divorce. That action though may be the most important action you can take.

Up-to-date beneficiary information helps the financial institution that is holding your funds locate your beneficiaries upon your death. If they cannot locate them they cannot contact them. If your beneficiary is never found then the money that you wanted them to receive gets sent to the state. After a certain period of time, that money may be forfeited and no longer claimable.

If you forget to change your beneficiary after a divorce, your ex-spouse may inherit the money that you intended for your current spouse. Spare your family the shock that they would face by keeping your beneficiary information up-to-date.

3 – Inform Your Beneficiaries

You need to help your beneficiaries retrieve information. You need to let them know that they are a beneficiary on your accounts; the types of policies that exist, the name of companies or the agent that hold your funds and where you keep the paperwork.

Your loved ones will appreciate the money you leave as their inheritance if  they know it exists and if it goes to the right person.  Make sure your wishes are carried out properly by staying diligent about your beneficiary information


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