Christmas pixies
As a child, my family used to do a lot of pixie deliveries during the Christmas season. That is when you place a treat or present on someone’s doorstep, ring the door bell and run to hide. Often they come outside to gather the item and say thank you into the dark. The person often smiles. There is something magical about creating surprising delight for others. I was reminded of this a few nights ago when someone pixied my family. I then found myself reflecting on a client who essentially pixied others via unique beneficiary designations of a life insurance policy and then passed away.
Some background first. An insurance policy can have multiple beneficiaries and each one can receive different amounts if you wish. The beneficiaries can be people, companies, charities or your estate. You can choose a dollar amount or a percentage of the death benefit to be paid out to each. You can change your beneficiary designation as many times as you like too. Upon death of the insured, the claim is often paid out within a couple of weeks, directly to the beneficiaries.
Back to my client who provided one last pixie to others. The client had news of a terminal illness with shortened life expectancy. There were many who were courteous to my client and assisted in all aspects of life, friendship, care and so forth. As a result, the client came to me with a list of unrelated beneficiaries. The client did not want to tell the people in advance of the beneficiary designations. I was amazed at how my client wanted to have a surprising delight for others. It really was a clean, clear way to accomplish that. The seemingly random nature of those beneficiaries didn’t matter to the insurance company. When the beneficiaries were presented with the proceeds of claim my client was of course already gone. However, the legacy and impact continue.
With Christmas nearly here, many will be with loved ones. We also tend to be kinder and more appreciative of others. Perhaps consider who is listed as a beneficiary on your life insurance policy. You still have time to be a pixie too.
Steve Meldrum B.Mgt. CFP CLU is the founder of Swell Private Wealth Ltd. For over a decade he has specialized in helping individuals and businesses expand protect and perpetuate their wealth. For further information or tailored advice, contact him at 403-487-0490, steve@swellwealth.com or connect on social media.