Life insurance is important to protect your family’s financial future.  Who you name as a beneficiary can be just as important as your initial decision to purchase life insurance. It’s a big job, which is why it’s important to choose the right person – someone who’s trustworthy and knows what matters most to you.

Your local ERIE agent is here to help you determine the right beneficiary (or beneficiaries) for your unique situation. Here is some helpful information:

What is a beneficiary?

A beneficiary is a person or entity designated to receive the funds from your life insurance policy in the event of your death. A beneficiary can be a person, business, trust, charity, church or even a school. An insurance policy can have more than one beneficiary, as well.

When selecting a beneficiary, a policy owner should select someone with “insurable interest” in the life of the insured. Insurable interest generally means that the beneficiary will incur some type of loss should the insured pass away.  Those with insurable interest often include, but are not limited to:

• Spouses, domestic partners, fiancés or common law spouses
• Divorced spouses (if there is a financial dependency, such as children or a property settlement specified in a divorce decree)
• Parents
• Legal guardians with permanent custody
• Grandparents
• Children
• Siblings
• Business partners

Why do I need a beneficiary?

Naming a beneficiary lets your insurance company know who should receive the policy benefit upon your passing. We require our policyholders to name a beneficiary when purchasing life insurance.

If a beneficiary is not named, your family could have to go through probate court before receiving any insurance funds. This process delays the benefit payment, while subjecting your loved ones to a complicated and costly legal process as they grieve.

How to choose a beneficiary

Choosing a beneficiary depends largely on how you’d like your life insurance to be used upon your death. If you have young children, naming a spouse or close family member you trust as your beneficiary and memorializing your wishes may be one way to provide for your children’s care in your absence. Grown children could use the insurance benefit to help pay for college. And if you choose a charity, the funds will go toward a cause close to your heart.

In short, who you choose as a beneficiary is dependent on your values and lifestyle. Here are some answers to common questions about beneficiaries to help you make your decision:

• What if my beneficiary dies?
  In the event you outlive your beneficiary, you should always call your insurance agent to update your policy. And ideally, you should always name a primary and contingent or secondary, beneficiary. Naming a contingent beneficiary makes it clear who should receive your insurance benefit if a primary beneficiary is deceased.
• What if my beneficiary is a minor?
  If you name a minor as a beneficiary, you should also name a guardian – someone who can manage the insurance funds until they turn 18. If you don’t want to name a guardian, you can always name your estate or living trust as the beneficiary, then include instructions on how the insurance money should be used. But when it comes to estate planning and wills and trusts, you should consult a legal and or tax professional.
• What if I don’t have any children?
  Your life insurance beneficiary should be a person or entity that you are comfortable naming as the beneficiary of your life insurance proceeds. If your beneficiary is a person, that individual should have an insurable interest in your life. An important part of choosing a beneficiary is making sure the funds are used in a way that honors your wishes.
• What if I want to leave money to a charity, school, or church?
  Your local ERIE agent can help you determine a way to honor your charitable wishes while making sure your family is protected, too. If you decide to name a charity as a beneficiary, it’s recommended that the amount should be consistent with an established pattern of giving or support.
• Can you choose a pet as a beneficiary?
  This isn’t as far-fetched as it may sound. Some people have left small fortunes behind to their pets. However, most insurance companies, including ERIE, won’t let you name a pet as a beneficiary. If you’re concerned about protecting your furry friends, name a trustee that will care for them after you’re gone.

What do I do after selecting a beneficiary?

After you find the right fit, you can inform your beneficiary of their new role. Here’s how to put them in the best position possible:

• Discuss your policy. No one likes talking about death. But it’s important to have a conversation with your beneficiary. You may want to discuss who your insurance company is and where they can find your policies when you pass. You can advise your beneficiary of why you chose them and what your final wishes are. Be prepared if they suggest an alternative or need more information.
• Update your information. When your funds are being distributed, any inaccuracy in policy documents can slow down the payment process. List your beneficiary with up-to-date contact information including an address, phone number and his or her relationship to you. This goes for organizations, too.
• Review your policy frequently. As your priorities change, so will your policy. Review your policy at least once a year and after significant events like the birth of a child, death of a beneficiary, marriage or divorce. Update your beneficiaries as needed and make sure your funds are in the right hands based on your current situation.

Protect the ones you love

Your life insurance policy should reflect what you value most. Choosing the right beneficiary is as personal as choosing the right coverage. That’s why we’re here to help you do both.

We know life is not a one-size-fits-all scenario. Each family dynamic is unique and we’re here to provide you with specialized guidance when it comes to protecting the people who matter most to you. Ask us how we can help protect your legacy.

It’s a universal fact: everyone needs life insurance. Whether you’re a student, parent (single or married) or empty nester, life insurance can help protect the life you’ve built for yourself (or a future, if you purchase life insurance for a child). So, what’s preventing you from getting a policy today? Aside from the general discomfort many get when discussing life insurance, presumed cost is often the top reason holding people back from obtaining life insurance.

According to the 2023 Insurance Barometer Study conducted by Life Happens and LIMRA, people think that life insurance costs three times more than it really does. So, what does this mean for you and your monthly budget? It depends on a number of factors.

Factors affecting the cost of life insurance

Just like with auto insurance, several factors impact your life insurance premium price. While some are obvious, others might not be, including:

• Age: Generally, the younger you are, the healthier you are so your premiums will likely be cheaper.
• Health: We already touched on this above, but good health will help lower your monthly cost. Bear in mind, life applicants typically pay more if they’re tobacco users. If you have a chronic health condition, that doesn’t necessarily disqualify you from being eligible for a life policy. Talk to an agent to explore your options.
• Lifestyle: Engaging in more dangerous hobbies (like skydiving or scuba diving) can cause premiums to rise.
• Sex at birth: Women tend to live longer than men on average, so their premiums are often slightly lower.
• Type of policy: Premiums are typically  lower for a term life insurance policy (available in 10-, 15-, 20- or 30-year plans) than a whole life insurance policy.
• Amount of coverage: Life insurance coverage amounts range from $10,000 up to $10 million. Most of us probably won’t need that much, but you can expect to pay less in premiums for a lower coverage amount than a large one.

Lock in your good health

Life has a funny way of throwing curveballs at you when you least expect them. That’s why ERIE offers the Guaranteed Insurability Option (GIO) rider for added peace of mind. It locks in your good health and great rate at the time your policy goes into effect. It allows you to increase your life insurance coverage easily when qualifying life events occur like getting married, buying a home and having a child.

Additionally, you have the opportunity to purchase more coverage because of your GIO rider at certain ages, starting at age 25 and going up to age 46 (basically every three years). The most coverage you can add at each point is $250,000, and an overall $1million cumulatively.

More affordable than you might think

For around what you pay for Netflix, you could have the protection of a life insurance policy. For example, a healthy 30-year-old male purchasing a 10-year term policy with $250,000 in coverage could pay less than $15 a month.

If you’re looking for an easier, more simple way to obtain a life insurance coverage, consider an ERIExpress Life policy. An ERIExpress Life policy gives you the protection you need through a simple application process, no physical medical exam and a faster approval time.

To help you figure out how much coverage you might need, use ERIE’s life insurance calculator.

Protection for your life and loved ones

Life insurance doesn’t have to be super costly. What you pay will depend on a variety of factors including how much and what length of coverage you want. A discussion with an ERIE agent can help you decide on the coverage that best fits your needs.

LIMRA is a large trade association supporting the insurance and related financial services industry by helping them understand industry trends, develop talent, inform strategies and create solutions that help advance the industry.

Even though it’s not something we like to think about, long-term care may be necessary at some point in your life. Maybe you have a heart attack, stroke or bad accident and need care suddenly, or maybe you develop a chronic illness as you get older.

Private health insurance or Medicare may not pay for the long-term services you or your loved ones require. That’s why having a plan and factoring in the long-term care options should be an essential component of your financial plans.

Find out how much you know about long-term care and if it’s the right policy for you by taking our long-term care quiz. This five-question quiz will help you better understand long-term care and why it’s important to consider.

Then, talk to your ERIE agent about a Long-Term Care Accelerated Death Benefit Rider from Erie Family Life Insurance Company. Your agent can go over your options based on your personal situation and help determine what coverage is right for you.

You’ve covered the electrical outlets, read the reviews for every crib, and learned more about car safety ratings than you ever wanted to know. We all go to great lengths to protect our families, but what about getting life insurance? With ERIExpress Life, protecting your family’s financial future has never been easier.

Keep reading to see why ERIExpress Life could be the perfect fit for your life insurance needs.

Who Needs Life Insurance?

If you have people who depend on you, you need life insurance. Even though it’s hard to think about a day when you might not be there for your family, it’s important to plan for.  Life insurance¹ can help your loved ones with expenses like:

• Mortgage or rent
• Auto loan or other debts
• Medical bills
• Education costs
• Final expenses

What is ERIExpress Life?

ERIExpress Life is the easy-to-get, easy-to-afford life insurance that gives you the protection you need with a simple application process, no physical medical exam² and a faster approval time.