How to Update Your Beneficiaries on Your Life Insurance Policy

 

Life insurance is a valuable product that can protect your family’s financial future in case you die unexpectedly. But life insurance is not just about you. It’s also about your beneficiaries.

Your beneficiaries are the people who will receive the money from your life insurance policy if you die. They can be anyone you choose, such as your spouse, children, parents, friends, or even a charity. You can name one or more beneficiaries and specify how much each one will get.

Your beneficiaries are important because they are the ones who will benefit from your life insurance policy. They are also important because they can affect your taxes, estate planning, and legal issues. That’s why you should choose your beneficiaries carefully and update them regularly.

Updating your beneficiaries means making changes to your life insurance policy to reflect your current situation and goals. You may want to update your beneficiaries for various reasons, such as:

• You got married or divorced
• You had a child or adopted a child
• You lost a loved one or a beneficiary died
• You started or ended a business partnership
• You changed your mind or your relationship with a beneficiary changed
• You want to support a different cause or charity

Updating your beneficiaries is not hard, but it requires some steps and precautions. In this article, we will show you how to update your beneficiaries on your life insurance policy in four easy steps.

Step 1: Review your current beneficiaries and your needs

The first step to update your beneficiaries is to review your current beneficiaries and your needs. You need to find out who your current beneficiaries are and what type of beneficiaries they are. You also need to assess your current needs and goals and determine whether your current beneficiaries still match them.

To find out who your current beneficiaries are and what type of beneficiaries they are, you can check your policy document or contact your insurer. Your policy document should list the names, relationships, and percentages of your beneficiaries. It should also indicate whether they are revocable or irrevocable.

Revocable beneficiaries are those that you can change at any time without their consent. Irrevocable beneficiaries are those that you cannot change without their consent once you name them. Irrevocable beneficiaries are rare and usually used for estate planning or business purposes.

To assess your current needs and goals and determine whether your current beneficiaries still match them, you can ask yourself some questions, such as:

• Do I still want my current beneficiaries to receive the money from my policy?
• Do I want to add or remove any beneficiaries?
• Do I want to change the percentage or amount that each beneficiary will receive?
• Do I want to change the order or priority of my beneficiaries?
• Do I want to name any contingent or secondary beneficiaries in case my primary beneficiaries die before me?
• Do I want to name any trusts or charities as my beneficiaries?

By reviewing your current beneficiaries and your needs, you can decide whether you need to update your beneficiaries or not. You can also decide what changes you want to make and why.

Step 2: Contact your insurer and request a change of beneficiary form

The second step to update your beneficiaries is to contact your insurer and request a change of beneficiary form. A change of beneficiary form is a document that allows you to make changes to your life insurance policy regarding your beneficiaries.

You can contact your insurer online, by phone, or by mail and request a change of beneficiary form. Your insurer should provide you with the form and instructions on how to fill it out and submit it.

You need to provide some information on the form, such as:

• Your name, policy number, date of birth, and signature
• Your new beneficiary’s name, relationship, percentage, date of birth, social security number, address, phone number, and email
• Your old beneficiary’s name and relationship
• The date and reason for the change

You need to fill out the form correctly and avoid any mistakes or errors that could delay or invalidate the change. Some tips on how to fill out the form correctly are:

• Use clear and legible handwriting or typing
• Use full names and avoid nicknames or initials
• Use accurate and consistent information
• Use percentages instead of dollar amounts
• Use “per stirpes” instead of “per capita” if you want to divide the money among the descendants of a deceased beneficiary
• Use “trustee of” instead of “trust” if you want to name a trust as your beneficiary
• Use “as custodian for” instead of “minor” if you want to name a minor as your beneficiary

Step 3: Submit the form and get a confirmation

The third step to update your beneficiaries is to submit the form and get a confirmation. You can submit the form to your insurer online, by phone, or by mail, depending on their preference and availability.

Your insurer should process the form and update your policy within a few days or weeks, depending on their speed and efficiency. Your insurer should also send you a confirmation that your beneficiaries have been updated and provide you with a copy of your updated policy.

You need to get a confirmation from your insurer that your beneficiaries have been updated and check your policy online or by phone. You need to make sure that the changes are correct and reflect your wishes. You also need to make sure that there are no errors or discrepancies that could cause problems or disputes in the future.

If you do not receive a confirmation from your insurer or if you find any errors or discrepancies in your policy, you need to contact your insurer and request a correction or clarification. You need to keep a record of your communication with your insurer and follow up until the issue is resolved.

Step 4: Inform your new beneficiaries and store your policy documents safely

The fourth and final step to update your beneficiaries is to inform your new beneficiaries and store your policy documents safely. You need to inform your new beneficiaries about your policy and their role. You also need to store your policy documents safely and securely and where to keep them.

You need to inform your new beneficiaries about your policy and their role because they may not be aware of it or may not know what to do if you die. You need to tell them:

• That you have named them as beneficiaries of your life insurance policy
• How much money they will receive from your policy
• When and how they will receive the money from your policy
• What they need to do to claim the money from your policy
• Who they need to contact if they have any questions or issues regarding your policy

You need to inform your new beneficiaries in a respectful and sensitive way because they may have mixed feelings or emotions about it. You need to:

• Choose an appropriate time and place to talk to them
• Explain why you have named them as beneficiaries and what it means to you
• Express your gratitude and appreciation for them
• Respect their privacy and confidentiality
• Answer their questions and concerns honestly and patiently

You need to store your policy documents safely and securely because they are important and valuable documents that prove your ownership of the policy and the rights of your beneficiaries. You need to:

• Keep the original copies of your policy document, change of beneficiary form, confirmation letter, etc.
• Make copies or scans of these documents and keep them in different locations
• Store these documents in a fireproof and waterproof safe or box
• Share these documents with a trusted person, such as a family member, friend, lawyer, or accountant
• Update these documents whenever you make any changes to your policy or beneficiaries

Conclusion

Updating your beneficiaries on your life insurance policy is not hard, but it requires some steps and precautions. You need to review your current beneficiaries and your needs, contact your insurer and request a change of beneficiary form, submit the form and get a confirmation, inform your new beneficiaries and store your policy documents safely.

By following these steps, you can update your beneficiaries on your life insurance policy in an easy and effective way. You can also ensure that the money from your policy goes to the right people at the right time.

Thank you for reading this article. We hope you found it useful and informative. If you have any questions or comments, please feel free to contact us. We are here to help you find the best life insurance policy for you and your loved ones.