beneficiary
A beneficiary is the person who receives the money from your policy, pension or account when you die.
In plain English
This is a fifteen minute task that decides whether your family waits three weeks or three years.
A beneficiary is the person you have formally named to receive something when you die. On a life insurance policy. On a pension account. On some bank and investment accounts.
The power of naming somebody is that the money usually passes directly to them. It does not wait for probate, it does not queue behind the rest of your estate, and it is far harder for anybody to contest. In a country where estates can be tied up for years while families argue and lawyers are paid, this is not a small thing.
The failure is almost always neglect rather than intent. The form was left blank. The person named was a partner from a previous life. The name was never updated after the marriage, the divorce, the second child.
Insurers and pension administrators pay who is written down, not who you meant. They cannot read your intentions and they will not try.
Check every policy and every account you have. Today, if you can. It costs nothing and it is one of the kindest things you will ever do for people you love.
A man dies with a ₦30 million life policy naming a beneficiary from ten years ago, before his marriage. The insurer pays the named person, exactly as instructed. His widow's grief now includes a lawyer, and she may well lose.
Questions people ask
How do I change my beneficiary?
Contact the insurer, pension administrator or bank and complete their form. It is usually free and takes minutes. Do it after every major life change.
What is next of kin?
Often confused with a beneficiary, and not the same thing. Next of kin is a contact for decisions and information. A beneficiary is who legally receives the money.
Do I still need a will?
Yes. Named beneficiaries cover specific policies and accounts. A will covers everything else you own, and without one the law decides for you.
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