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The policy owner has the right
to name one or more beneficiaries.
- You can name any person
or organization as a beneficiary
- You can specify the amount
each beneficiary is to receive
- A "contingent"
beneficiary receives benefits only if other
beneficiaries have died
- A "revocable"
beneficiary is one you can change at any time
- An "irrevocable"
beneficiary has legal rights in your policy...
you will need the beneficiary's consent to make
any changes, to surrender the policy, or take
out a policy loan
- For the reason above,
it is not a good idea to name a child as an
irrevocable beneficiary
A Few Guidelines To Consider
- Select a specific person
to receive payment, as life insurance proceeds
can be paid immediately after death.
- Always consider naming
a contingent beneficiary, in case you outlive
your first beneficiary.
- Be very specific in
wording beneficiaries. “Wife of the insured”
could result in an ex-spouse getting the proceeds
and naming specific children may exclude those
born later. Changing a beneficiary is easy,
but you have to remember to do it.
Next
» 7. Whether Or Not To Replace Policies
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Naming
Beneficiaries