How do I name or change the beneficiary on my life insurance policy?

By Insurance.com Posted : 01/01/2011

Naming a beneficiary is a crucial part of the life insurance process. If you fail to name a beneficiary and you die, the life insurance policy typically becomes part of your estate and is subject to probate. There are several factors to take into account. Here are must-know tips for naming a beneficiary:

Let Insurance.com help you find affordable life insurance now.

1. Details count -- you should spell out the names of all of your beneficiaries and provide your agent with their Social Security numbers to facilitate benefit payouts should you die. You should also designate how you want the money distributed if there is more than one beneficiary.

2. Consider naming primary, secondary and final beneficiaries. That way, if your primary beneficiary dies before you do, or at the same time, the money will go to your secondary beneficiary. If your secondary beneficiary is no longer alive, the money will go to the final beneficiary.

3. Don't forget to update your beneficiary list if you experience a life-changing event such as a divorce or the birth of children. Contact your life insurance agent or insurer should you want to change a beneficiary.

4. Be aware that life insurance companies won't pay benefits directly to children. If you name a child under age 18 as a beneficiary, you should make arrangements for how the money will be managed through a trust or other legal provision.

5. Dependents who receive Supplemental Security Income and Medicaid could become ineligible for assistance if they receive a large financial inheritance, so be careful about naming them as life insurance beneficiaries.

6.In states with community-property laws, your spouse would have to waive the right to your life insurance proceeds even if you named someone else as a beneficiary. Check with your insurance agent to learn the details.

Related Articles on Insurance.com

3 Responses to "How do I name or change the beneficiary on my life insurance policy?"
  1. Rebecca L. Bosuego 16, Dec, 2013

    I want to change the beneficiary from my friend to my children and grand children. How do I do that?

      Reply»  
  2. Janet 16, May, 2013

    Can my husband take me off our life insurance policy's that named me as the benefiary? We are very much married but my husband is very controlling and he said he took me off the policy and named my son as the benefiary. I am very upset and angry.

      Reply»  
    1. alene m. hunter-thomas 30, Oct, 2013

      I am wishing to change my Benefiary Life Insurance Policy.

        Reply »  

What do you think? You can add a helpful comment to this page by filling out the form below.
Just looking for a quote? Click here
 
 
 

Quote & Compare

Want to bundle home and auto insurance for potential discounts?

Give your feedback