Estate planning is something that some people do once and then forget about it. That, however, isn't the best way to plan for your loved ones after you pass away. All estate plans should be reviewed and updated periodically. Maryland readers might be interested in knowing that updating estate plans involves more than just reading over your will. It also involves checking insurance documents to ensure that the correct person is listed as the beneficiary on the policy.
When dealing with estate plan updates, it is important to remember that just because you update your heirs in your will doesn't mean that your life insurance policy will automatically reflect those changes. A life insurance policy is considered a contract between the policy holder and the life insurance company. This means that the life insurance company will pay out the benefits to the person who is listed as the beneficiary on the policy.
For that reason, you should check your life insurance policy and update the primary beneficiary as needed. If you have your sibling listed as the beneficiary but have gotten married, your spouse won't get the money from the policy. Instead, the company will pay out to your sibling.
If you want to make a contingency plan for the funds, you can name a secondary or contingent beneficiary. This person would get the life insurance funds if the primary beneficiary passes away before you.
A proper estate plan covers everything from plans for your end-of-life care through the distribution of your assets. Part of this means ensuring that your life insurance plans and other estate planning documents have the proper beneficiaries who will ensure that your wishes are followed when you are gone.