Name a specific person as the beneficiary on the policy, and remember to claim when something happens: within 5 years for life insurance and 2 years for other insurance
- Top value
- Evidence A
- Saves money
- Free
- Takes minutes
- No willpower
In plain words
If no beneficiary is named, or the beneficiary has died first, the insurance payout counts as part of the estate and is first used to pay the debts the deceased owed. If the beneficiary is written as "wife so-and-so" and they later divorced, it counts as none named when the event happens. Family members need to know the policy exists: for life insurance you must claim within 5 years of learning of the event, and for other insurance within 2 years.
Translated from the Chinese original. Original book, section 5, tip 44. This section is about money and spending. It is general information, not financial or investment advice. Content may be out of date and rules differ by place. When you actually deal with an agency, a doctor or a court, follow what local officials, doctors and lawyers tell you. Disclaimer