Choosing and Managing Beneficiaries
A beneficiary is the person (or persons) who receives the life insurance payout. You name them in your policy. Keep your beneficiary nomination up to date — especially after marriage, divorce, or the birth of children.
You can name multiple beneficiaries and split the payout by percentage. Consider naming a contingent (backup) beneficiary in case your primary beneficiary predeceases you.
How Much Life Cover Do You Need?
A common rule of thumb: 10 times your annual income. But also consider:
- Outstanding mortgage balance
- Years until your children are financially independent
- Funeral costs (can exceed $10,000 in many Caribbean territories)
- Any debts that would fall to your family
- Education costs for children
Caribbean context: In many Caribbean families, one income supports multiple generations. Adequate life cover is not a luxury — it is a lifeline for those left behind.