Life insurance is ultimately about protecting the people who matter most. But what happens if your payout doesn’t go to the right person—or gets delayed for months in legal disputes?
Naming and updating your life insurance beneficiaries is just as important as buying the policy itself. This guide will show you how to choose, update, and manage your beneficiaries wisely, so your loved ones are taken care of without confusion or delays.
What Is a Beneficiary?
A beneficiary is the person—or people—who receive the payout from your life insurance policy when you pass away. Beneficiaries can be:
- A spouse, parent, or child
- A sibling or extended family member
- A legal guardian or dependent
- Even a charity or organization you wish to support
It’s essential to list them clearly in writing on your policy. Without this, the funds may not reach the intended person.
Who Can You Name as a Beneficiary?
When it comes to who can be a beneficiary, you have more flexibility than you might think:
- Immediate family (spouse, children, parents)
- Siblings, dependents, or guardians who rely on your income
- Trusts or legal entities for structured planning
- Charities or friends in special cases
Keep in mind: if you name a minor, the payout usually goes through a guardian or trustee until they are legally old enough to manage the funds.
Tips for Choosing the Right Beneficiaries
Selecting the right person requires more than just listing the closest relative. Consider:
- Who relies on you financially? Dependents with education or medical needs should be prioritized.
- Don’t forget parents or extended family. Many Batswana support aging parents or siblings.
- Split coverage fairly. You can assign percentages—for example, 60% to your spouse, 40% to a child.
- Cultural and legal factors. Inheritance expectations can influence how your choices are received, so it’s wise to balance family needs with clear documentation.
Example: Thabo got married but never updated his beneficiary, leaving his mother listed on the policy. After his passing, the payout didn’t go to his wife and children as he had intended. A simple update could have avoided this heartache.
Why You Must Update Beneficiaries Regularly
Life changes fast—and so should your policy details. Common reasons to update include:
- Marriage or divorce
- Birth or adoption of a child
- Death of an existing beneficiary
- Taking on new financial dependents
Failing to update your life policy Botswana can cause major delays. Importantly, the name on your policy overrides your will—so the listed beneficiary will always take priority. That’s why it’s smart to review your policy every year, or after any major life event.
What Happens If You Don’t Name a Beneficiary?
If you fail to name (or update) your beneficiary:
- The payout may go to your estate, causing legal delays.
- Distribution will follow inheritance laws, not your wishes.
- Families may wait months—or even years—for resolution.
Something so simple can have life-changing consequences for your loved ones. That’s why updating your beneficiaries is one of the most powerful financial acts you can take.
Choosing and updating your life insurance beneficiaries is just as important as buying the policy itself. It ensures your family is protected quickly, without confusion or delays.
Take 10 minutes today to review your policy—or speak to a Bona Life advisor. A small step now could prevent major financial stress for the people you care about most.
📞 Call: +267 398 1800
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🌐 Visit: www.bonalife.co.bw
Written by Evan Hamlyn