Tips on how to divide life insurance policy beneficiary when claiming of benefits. One of the InvestmentTotal.com readers asked a question on how to divide life insurance policy beneficiary, Rhonda has 2 kids from Texas, USA. Here is her email message sent to us.
Hi InvestmentTotal.com admin, I am a loyal visitor from USA. I want to know the ideal percentage or amount on how should i divide my life insurance benefits. I am married and have 2 kids, my kids were at grade grade 7 and grade 10. Thanks – Rhonda G, Texas, USA
Insurance Premium.Net Response:
This is good question, dividing your life insurance policy could be done after you analyze the following;
- Age of Your Spouse
- Kids Education
Tips in Dividing Insurance Policy Beneficiary During Claiming
First, you have to analyze if your spouse need much money just in case you left him/her behind. Considering the way or that plan of your spouse after he/she claimed the benefits. If you spouse is too wise, he may invest the money (the benefits) and grow it for the preparation of your kids education.
However, if your spouse is planning to marry again and the benefits will only spend to his/her next spouse, you should divide your life insurance beneficiary as 60/40 or 70/30 whatever you want.
Benefits Distribution: 70% for Kids and 30% for Spouse
70% for your kids and 30% for your spouse. Anyway, if you really love your kids, you have to also get a educational plan not just a insurance plan. Or the best is to opened them an investment account even though they are still kids (minor age). Do it by opening a “in-trust-for investment account.
You should talk this matter to your spouse. Your plans and goals. Go together and find a certified financial planner and talk about this matter.
If you have another question related to life insurance, just send us email messages. (go to contact page). Feel free to share your opinions about the proper way on how to divide life insurance policy beneficiary. Thanks for reading!