Protecting your loved ones financially following your death is a concern for many. Your life insurance can provide a payment to your loved ones if you pass away while the policy is in place.
Life insurance is an essential tool for many families that can help replace the income your family loses as a result of your death. As the policyholder, you are responsible for making important decisions about the policy and its beneficiaries. 
What Is a Beneficiary?
The person you, as the policyholder, name in the plan is called a life insurance beneficiary. You can choose one person or multiple people. Your beneficiary, or beneficiaries, will receive the funds in the policy at the time of your death.
Your spouse or children are the most common choice as beneficiaries. If your children are young, you can name a trustee or a guardian for them. A trustee or guardian can oversee the use of the funds and be in charge until your children are old enough to manage the funds independently.
Who Should You Choose as a Beneficiary?
Here are a few things to consider before deciding who will be your beneficiary:
- Who are your dependents now? These are the people who would most likely need financial support after your death.
- If you do not have dependents, you can name a charity or third party to benefit from your life insurance.
- You can name anyone as your beneficiary. There is no law requiring your beneficiary to be your spouse.
- After naming a beneficiary, that person gains complete control over the money after your death. Consider the age of your beneficiary and their ability to manage finances. A trustee or guardian for the funds can be considered and named if the situation calls for it.
- You can change your beneficiary when the policy is in place and you are competent to do so.
To determine the best route to protect your family after your death, work with a life insurance agent to talk about your situation. They can assist you in selecting the covered you need along with setting up your beneficiary.