Life Insurance Leads Santa Fe New Mexico NM

Reader’s Question:

Will it be possible for me to name someone other than a relative as the beneficiary of my life insurance policy in Santa Fe New Mexico NM?

It might be typical for an individual to name his or her spouse, child, parent, or other relative as the life insurance beneficiary, non-relatives can also be named. You may designate your business partner, lender, estate, trust, or domestic partner as beneficiary of your life insurance policy. Check the laws in New Mexico NM though. There will be a few states that will require policy owners to have an unrelated beneficiary under certain circumstances have an insurable interest. Insurable interest exists when a party has a financial interest in another party’s life. The beneficiary of any life insurance policy must expect to suffer financial loss if the insured prematurely dies.

Before designating a life insurance beneficiary, you should also make sure that you understand all of the tax implications. Proceeds and benefits from your life insurance will not be income taxable. There may be other considerations like naming your estate as the beneficiary of your life insurance policy. This will increase the size of your estate and may necessitate probate and create an estate tax liability. Consult with an attorney or accountant in Santa Fe New Mexico NM for more information.

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