Many aunts and uncles view their nieces and nephews as they would their own children. However, some aunts and uncles may be childless or estranged from their grown children.
In such situations, is it possible to add a niece or nephew as a life insurance beneficiary? Homeowners Insurance Group in Scottsdale, AZ is here to provide clarification.
Adding a Niece or Nephew as a Beneficiary
As a life insurance policyholder, you can choose who will receive the death benefit upon your passing. If you have a niece or nephew, you can likely add them as beneficiaries.
Generally, any individual or entity can be named as a life insurance policy beneficiary. However, some states prohibit designating minors under 18 as beneficiaries.
Additionally, if the beneficiary is disabled, it may be wise to establish a special needs trust. This ensures they can receive the death benefit without negatively impacting their eligibility for government benefits.
Typical Life Insurance Beneficiaries
Most life insurance beneficiaries are close dependents, such as adult children and spouses. Other family members, including cousins, siblings, and parents, can also be named as beneficiaries.
Nieces and nephews fall under the category of family members and can be designated as beneficiaries. Even romantic partners, friends, charities, and organizations can be selected as life insurance beneficiaries.
Notify Your Niece or Nephew of the Beneficiary Designation
If you decide to name your niece or nephew as the beneficiary, it’s important to inform them of your decision. This ensures that, in the event of your passing, they are aware of their entitlement to the policy’s death benefit.
Get Your Quote Today
If you’re in the market for umbrella insurance, contact Homeowners Insurance Group in Scottsdale, AZ at 480-626-9376. We’ll provide coverage information tailored to your needs and offer a customized quote.