Failing to name a beneficiary on your life insurance policy can leave your loved ones without quick access to the funds. In such cases, the payout is directed to your estate, where it may be delayed by probate and reduced by taxes or legal costs. This can also lead to family disputes over who should receive the money. To avoid complications, always name both primary and contingent beneficiaries and review your designations regularly, particularly after major life changes like marriage or childbirth.
