Beneficiary: Designation Complications

​To carry out a policy owner's intentions effectively so that the correct individual(s)/entity(ies) receive the death benefit proceeds, policy language must be detailed and unambiguous. Here are a few beneficiary designations to avoid:

Minor children: this does not take into account the fact that the children will eventually reach adulthood Children: when undefined, this could mean many things: children from the current marriage, a previous marriage, adopted children, step-children, illegitimate children Dependents: this limits beneficiaries to those actually dependent upon the policy owner for support

Related Terms: Beneficiary, Beneficiary: Contingent, Beneficiary: Irrevocable, Beneficiary: Minors, Beneficiary: Per Stirpes, Beneficiary: Primary