Forward Bank

Creating a joint budget, buying life insurance, and communicating openly about money are important for staying on top of your finances. The additional task of naming beneficiaries to your financial accounts is equally important and should be done as soon as you’re married.

Here’s what you need to know to ensure your money ultimately ends up where you want it to:

What is a beneficiary?

A beneficiary refers to someone you’ve designated to receive distributions from your trust, will, financial accounts, or life insurance policy if something happens to you.

Why is it important to have beneficiaries?

Providing accurate beneficiary information helps ensure that your loved ones receive any funds without delay and will be taken care of in the manner you wish.

Isn’t my spouse automatically my beneficiary?

In some states and for some accounts, yes. But it’s not universal. That’s why you should always assign a beneficiary on any account that allows it, and check them annually to make sure they’re up-to-date.

What common financial accounts need beneficiaries?

Some of the more common accounts include life insurance policies, individual retirement accounts, mutual funds, and annuities. Bank accounts don’t always require beneficiaries, but adding one could help ensure those account assets will be distributed as you’d like them to be.

Different accounts and policies may have different requirements for adding or updating beneficiaries, and it can get complicated. For help getting started — or for answers to any questions you might have — give us a call. We’re always here to help!