When you purchase life insurance, choosing your beneficiaries is a challenging yet crucial step in the process. Who to name as your beneficiaries is something only you can decide. You have the option to name more than one beneficiary, which can be accomplished by assigning a percentage of your life insurance benefits among two or more people on your application. There is no set limit to the number of beneficiaries you can name. However, with multiple beneficiaries, it is best to designate a percentage of the proceeds rather than a dollar amount to each.
There are two basic types of life insurance beneficiaries. Many insurance professionals believe that the safest approach is to name one or more beneficiaries of each type.
Within the two types of beneficiaries, there are also two classes – revocable and irrevocable beneficiaries. Insurance professionals typically recommend the revocable beneficiary option to avoid potential legal issues than may arise with irrevocable beneficiaries.
If you want to name multiple beneficiaries in your life insurance policy, you have two different options as to your approach: