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Life insurance policies- need a contingent beneficiary?


My husband and I were just approved for life insurance policies. We need to designate a contingent beneficiary for both polices.

Obviously, we will choose each other as the primary.

We do have a trust set up.

Providing that the insurance company will pay the proceeds to a minor, do you recommend listing our 1 year old as the first contingent?

Or would you recommend placing our trust as the contingent? One of our bigger concerns is that if the policy pays to the trust, then the money will be taxed.

This seems to me to be too important a question to rely on answers from here. As well meaning as they may be, you would still need to discuss the with your insurance agent and a tax attorney.
You can change it at any time. I often see people send it to a will, estate or trust.
No, because then whoever is guardian of the child will have control of the money. I recommend leaving the trust as the beneficiary, and then designate the trust to cover the kid's expenses.
You should speak with an estate planning attorney regarding this issue. That being said, I would recommend listing the guardian of your children as the contingent beneficiary.

Good luck!
http://www.ramblingsfinancial.blogspot.c...
Since you want your child to have the money in case both of you die, my advice would to name the Trust as a contingent beneficiary. If both of you died tomorrow, what is a one year old going to do with the money?

As the child gets older, say around 18 years old, you can change the contingent beneficiary to your child.

That is what I would do anyway.
I am not a pro at the trust thing, but I am a life insurance agent in Utah. From what I have heard, a trust is the smart way to go here. You should talk to your attorney or the person who would help you write the trust.

For free life insurance quotes, and to connect with a local agent who can help you through this, fill out a quote form at http://www.myinsurancequotes.net.

Thanks!

Jared Balis
http://www.utahinsurance.org