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Beneficiary Designation Information

Bag full of money

Designating your beneficiary on a life insurance policy is one of the most important parts of the policy.After all, the reason you are buying the policy is to provide the financial assistance needed to your survivors.

Only the policy owner is authorized to designate and change beneficiaries. The owner may designate any individual, legal entity or estate. The owner may change the beneficiary designation at any time prior to the death of the insured and without the consent or knowledge of the beneficiaries. Some policies require a notarized signature on a beneficiary designation or change, check with your insurer for details.

If you have a beneficiary that is designated by a court order, you must get an amended court order to make any change, and present that court order to your insurance company.

If you are naming a minor, be aware that many ife insurance companies won't pay the proceeds directly to minors, you must often set up a trust or designate a guardian, if you don't the court will do so and that is an expensive and time-consuming process.

You should also name more than one beneficiary, just in case the primary beneficiary dies before you or something happens to you and your beneficiary together.

The best bet is to discuss any questions you have with your insurance agent, and make an informed and thoughtful decision.

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