A beneficiary is important because this is the person or persons who will receive the money from your life insurance policy when you pass away. If you have not selected a beneficiary, it will create chaos when determining where the proceeds of your life insurance will go.
You can also change or update your beneficiary each year if your beneficiary choice has changed. Marriage, divorces, deaths, and life changes are reasons you should look at your beneficiary choices every year to ensure that this person is still who you would like to receive the proceeds from your life insurance.