The main points to remember about a beneficiary:
- You choose the beneficiary who receives the life insurance death benefit.
- You can have multiple beneficiaries receiving equal or varying amounts.
- Naming a beneficiary helps you direct the distribution of payable death benefits.
- You can change the beneficiaries and benefit payout structure at any time.
Denise Wardwell is a Farmers Insurance® agent in Houston, Texas. Here’s what she tells customers about designating a beneficiary.
When you purchase life insurance, you’re providing a financial benefit to someone if you die. Naming that person as your beneficiary allows you to choose where your policy’s payable death benefits go when you die. When you select a beneficiary for your policy, it becomes part of a binding contract between you and the insurance company, not part of your will and not a decision left up to probate courts or your next of kin.
You can designate more than one beneficiary, and you can choose how much of the death benefit goes to each person. For example, you could have three beneficiaries, with one receiving 50 percent of the benefit and the other two receiving 25 percent. The number of beneficiaries and the amount allocated to each is totally up to you.
You can change your beneficiaries at any time during the life of the policy. For instance, you might want to update your beneficiaries if you get married, have a child or make other changes in your life. I invite customers to meet with me every year to review all aspects of their coverage, including beneficiaries.
The information contained in this page is provided for general informational purposes only. The information is provided by Farmers® and while we endeavor to keep the information up to date and correct, we make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability or availability with respect to this article or the information, products, services or related graphics, if any, contained in this article for any purpose. The information is not meant as professional or expert advice, and any reliance you place on such information is therefore strictly at your own risk.