A life insurance policy is one way to ensure the financial security of your loved ones after you pass away. You can divide the amount of your policy among as many people as you wish by designating them as beneficiaries of your policy; a beneficiary is anyone who receives benefits from the life insurance policy. You can change one or more beneficiaries on a life insurance policy simply by filling out a form provided by your insurance company.
Step 1
Download a "change of beneficiary" form from the website of the company that issued your life insurance policy. You can also contact the insurance company by phone and request that they mail you the form.
Step 2
Fill out the form in its entirety; list the names, addresses, and dates of birth of any new beneficiaries, along with the percentage of your policy's payout that you wish each beneficiary to receive, in the section of the form labeled "active beneficiary," "new beneficiary," "designation of beneficiary" or "beneficiary information."
Step 3
Sign and date the form in the presence of a notary. Notarizing a change of beneficiary is required by many insurance companies and helps prove your intent to change a beneficiary in the event of a legal challenge to the change.
Step 4
Mail the completed form to your insurance company using certified mail. Purchase a return receipt or delivery confirmation so that you have a record of the company's receipt of the form. The insurance company will send you a letter of confirmation once it has made the change to your policy.
Tips and Warnings
- If you become mentally incapacitated due to injury or illness, the law presumes that you are unable to make legal decisions for yourself. Changes to legal documents such as life insurance policies, wills, or trusts made during a period of mental incapacity could be rendered invalid by a court. Laws regarding mental incapacity vary by state, so contact a probate or estate attorney in your state to help you create a contingency plan to allow for changes to legal documents in situations in which you could be considered mentally incapable to make legal decisions.
- Some life insurance policies allow for "irrevocable beneficiaries." Such beneficiaries cannot be changed by a policyholder without the beneficiary's consent. Consult an attorney if you wish to change an irrevocable beneficiary, as requirements vary by state. You cannot change a beneficiary of a life insurance policy using a will. You must change the designation on the policy itself through the issuing insurance company. Divorce does not automatically terminate the former spouse's status as a beneficiary.
Member Comments