After a person’s unfortunate passing, the distribution of assets to heirs depends on several details. Many assets go into probate, but generally, life insurance policies don’t.

Understanding Probate

Probate is the legal process determining the distribution of a deceased person’s assets. Even when it’s smooth, probate can take time. Hence, residents of Sandy, UT, should not count on receiving inherited assets that go into probate right away.

Life Insurance Bypasses Probate

When set up correctly, life insurance benefits generally do not go through probate. The death benefits are often paid directly to the named beneficiaries, with no need for probate or court involvement in most cases. At The Smith Insurance Group Inc., we can ensure a policy is set up correctly.

The direct transfer of benefits ensures privacy and provides the funds quickly to beneficiaries, who might need immediate financial support for funeral expenses, debts, or ongoing living costs.

Named Beneficiaries

It’s essential to name your chosen beneficiaries correctly in the policy to ensure that life insurance proceeds go directly to them in Utah.

When buying life insurance, you can name one or more individuals, trusts, or organizations as beneficiaries. These can be updated at any time; thus, you can make changes if there’s a birth, death, divorce, or another event that alters who you’d like to receive the policy’s death benefits.

Set Up Your Life Insurance

If you haven’t purchased life insurance and are in Sandy, UT, contact us at The Smith Insurance Group Inc. One of our knowledgeable agents will set you up with a life insurance policy that’s right for your situation — and they’ll make sure you have the correct parties listed as named beneficiaries on the policy.