This topic came to my attention because I've been going over some issues on yahoo answers and it truly amazes me how many times the insured never updates their life insurance policy.
For example, let's say your father was married to your step mom couple years back and they are currently divorced. Unfortunately your father passed away unexpectedly and he never heard from his life insurance agent ever since he issued that policy to your father (this happens all the time). Your father, therefore never got around to changing the beneficiary and now your stuck with your dad's bill and the step mom keep the death benefit and won't help whatsoever with the funeral expense or any financial problem that your father incurred. Unfortunately whoever the name is on the beneficiary will get that death benefit and there is really nothing that can be done to change that.
Tip of the day: Make sure that your agent follows up with you or your guardian at least once a year because lifestyle and circumstance do change!
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