A beneficiary should be someone you trust

Do Beneficiaries Have To Be Family Members?

When selecting burial insurance, one of the most important questions is about beneficiaries.  Who you’ll choose, what responsibilities they’ll have and your expectations of them are all things that should be thought about thoroughly.  Let’s go over a few other things that should be kept in mind when selecting a beneficiary.

Family or Non-family

Beneficiaries do not have to be family.  In fact, your beneficiary doesn’t even have to be a person.  It’s completely possible to select an organization or company you would like your funds to be donated to.  Choosing a cause you believe in is an excellent way to continue your legacy and ensure that the death benefit is being spent how you want it to be.


Many people want to choose a minor as their beneficiary as a way of ensuring that they have access to needed funds.  In most cases, this is not the best decision.  Insurance companies will not release the death benefit to a minor.  Because of this, it’s best to choose an adult beneficiary, as one would be appointed anyways if you select a minor.

Even if your child is a minor, they can still receive the funds.  Make sure the beneficiary you select is aware you want the death benefit to go to the minor and they can make those arrangements when the time comes.  If you don’t have a child or would like the funds to go to someone else, that is possible.  Beneficiaries do not have to have any relation to you.  Often people will choose a close friend to be their beneficiary.  Choosing someone you care about and know well is an excellent way to gain peace of mind.


The beneficiary you choose should be someone that you trust fully to carry out your wishes and act responsibly with the death benefit.  As they’ll be in charge of the allocation and distribution of the death benefit, they’ll have a large amount of responsibility.  It’s important that you discuss your beneficiary’s role with them.  Open communication about the events you’d like to take place after passing is an important part of them being able to use the death benefit accordingly.

Spending the death benefit

End-of-life insurance policies will have varying death benefits.  Some may be a few thousand dollars, with others going up to $25,000 or more.  It’s extremely important that your beneficiary understands the details of your policy and how much the death benefit will be.

If you choose a non-profit or organization as your beneficiary, you may have less of a say as to how the money is spent.  This is one of the reasons why it’s so important to know who your death benefit is going to and be sure about your decision.

At Senior Life Services, our team works with you throughout the whole process.  From selecting the right burial insurance policy to helping your beneficiary with details, we’re here to provide guidance and expertise.  We understand how hard insurance decisions can be, so we’re here to make them simple.


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