Posted on: Sunday, November 20th, 2011

Aetna life insurance offers quality guidance for their customers.  An important topic that all policy holders should understand is the beneficiary.  Aetna needs to know who your beneficiary is so that can pay proceeds of a life insurance policy to the appropriate person if need be.  If you do not list a beneficiary of the designated beneficiary dies before you, they will pay your group life insurance payout to the beneficiary provision for the group policy.

When applicable, it’s a good idea to list multiple beneficiaries.  This way, if one is unavailable, there are other options for your life insurance company to get the funds to the appropriate place.  There can be some disadvantages to having proceeds payable to your estate.  It’s important to talk to a legal advisor for implications in this scenario because it’s a very important decision.

The next important question is who should you name as a beneficiary?  Your beneficiary can be the individual for whom you want to provide the financial security to in the case of your death.  This typically ends up being a spouse or very close family member.  Depending on your unique circumstances, you may prefer to name your estate or trust as the beneficiary.  Watch out for tax consequences in each situation so you know what you can expect.  This is an important decision that all life insurance policy holders must make, so take your time weighing your options.

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