16 April, 2023

Quora Answer: Should You Name Your Trust as a Beneficiary of Your Life Insurance?

The following is my answer to a Quora question: “Should you name your trust as a beneficiary of your life insurance? 

You do such a thing when you do not intend your policy to pay out in lump sum to your beneficiaries, or to your estates, if you have not nominated any beneficiaries.  People name their trust the beneficiaries of their life insurance when they intend for the trust to pay out over an extended period of time, perhaps across multiple beneficiaries.  This would be the only reason why you would want your insurance policy to pay out to your trust.



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