An essential part of estate planning is designating beneficiaries for your life insurance policy, 401(k), and other financial accounts. A beneficiary is a person who receives someone’s assets upon their death.
There is no “correct choice” when choosing the beneficiaries who will inherit from you. It’s a personal decision. What must be handled “properly” however is the process of naming beneficiaries so that your loved ones can inherit what you desire for them. Let’s look at beneficiary designations in a bit more detail.