Who’s Getting Your Assets?
Ensure it goes to those who matter most
by ALEX CASTILLO-SNOOK
You think you have everything under control. You work hard, pay your bills on time, invest wisely and have life insurance.
But what if you passed away tomorrow? Do you know who would inherit your assets and receive the benefit of your insurance?
While not pleasant to consider, should the unthinkable happen, being prepared is critical. Part of that preparation is naming a beneficiary for your life insurance.
Here is a primer on the importance of beneficiaries and why keeping them current is important: What is a beneficiary? A beneficiary is a person or multiple people who are entitled to a certain benefit like life insurance, upon your death. They don’t need to be family members. Why designate a beneficiary? When you pass away, the person who is named your beneficiary will received the benefit amount, tax free, without being made public through the settlement of your estate. Contingent Beneficiary - Who is this and why should I name one? A contingent beneficiary is someone who receives benefits if the primary beneficiary has died at or before the time the benefit needs to be paid. Trustees for minors A trustee is someone who will act on your behalf to ensure that the funds are invested properly for minors listed as beneficiaries until they reach the age of majority to receive them. No beneficiary = No immediate payout. With no beneficiary or contingent recipient named, funds will instead go directly into your estate. If there is outstanding debt, these funds are firstly used to settle that, secondly to cover any legal fees and then, finally is taxed within the estate balance. If there is anything left, it will be distributed according to your will. If, on the other hand, you have named a beneficiary, upon your death, barring no red flags, the cash will be immediately distributed to that person, it will never be held to go to the estate and it will never be on public record.
At Peak Benefit Solutions, we can help you with updating your beneficiaries and help to answer any questions you may have regarding your insurance and which types of benefits have beneficiaries associated with them. ~
CLIENT EXPERIENCE SPECIALIST
Alex joins the Peak team with a strong background in customer service and human resources. With almost two decades of experience, Alex focusses on working directly with our clients to ensure the highest level of customer satisfaction with communication of their group benefit plans. He frequently meets with clients to host employee meetings while ensuring their plan continues to achieve the ongoing needs of their company.
Alex works from our head office in Peterborough, the town he and his wife raise their two young boys. He is a certified ski instructor and an avid skier and camper.
Peak Benefit Solutions Inc. was established in 2008 and have helped more than 400 clients from entrepreneurs, manufacturing, professional services and public organizations with their comprehensive benefits planning. Every step of the way, we are with you.