When most people in Albany, New York think about saving for retirement, they think about contributing to a 401-K plan through their employer or maybe setting up a Roth IRA account. While those are two good options, there are also ways to build a solid retirement policy by purchasing an annuity or a whole-life insurance policy through an independent agent.
You buy life insurance or establish a retirement policy because you care about someone else and want to make sure that they are well provided for if you are not around to help support them. Whatever type of retirement policy or life insurance policy you may own, or contemplate buying, will have a question asking you to name one or more beneficiaries.
In New York, there is no specification as to whom you can list as a beneficiary on a retirement policy. Usually, people name their spouse, children, relatives or close friends as beneficiaries. You might name your sister in Saratoga Springs or your grown son who resides in Schenectady. You can name just one beneficiary or several beneficiaries. The choice is up to you.
There are two categories of beneficiaries. A primary beneficiary will receive the proceeds of your retirement policy upon your passing. If there are several primary beneficiaries named, each beneficiary will receive an equal share of the proceeds unless you specified a percentage that each individual should get.
If all primary beneficiaries that you named pre-decease you, the next eligible group to benefit from your retirement policy are any contingent beneficiaries that you may have named on your policy. If there are no beneficiaries, the balance in your account will become part of your estate that will need to be settled.
As your independent agent, we want to make sure that you have the right type and amount of coverage so your beneficiaries will be well taken care of for the rest of their lives. Give us a call and we can answer any questions you may have about insurance and planning for the future.