John age 38, and Mary age 35 have limited assets at their stage in life. Other than a home (with a big mortgage), IRA and 401 (k) accounts, and some personal property, they have some cash and investments. They each individually have a $1,000,000 life policy with each other as primary beneficiary and their children (ages 8 and 10) as secondary beneficiaries. Which is the most appropriate beneficiary designation for their respective life insurance policies?
a. Leave unchanged
b. Change the primary beneficiary to the children
c. Set up a revocable living trust with applicable credit provisions and name the trust as the beneficiary
d. Set up a testamentary trust with applicable credit provisions and name the trust as the contingent beneficiary