Your beneficiary is the person or entity that receives the benefit when you pass away. Most people name a spouse, partner, children, or another loved one, and you can name more than one and choose what percentage each receives. You can also name a trust or a business when that fits your planning. Naming a primary and a backup, or contingent, beneficiary is wise in case something happens to your first choice.
It is important to keep beneficiary designations current, because they generally take priority over what your will says about that policy. Major life events such as marriage, divorce, a new child, or a death in the family are natural times to review and update them.
In most cases you can change your beneficiary at any time by submitting a simple form to the insurer, unless you have chosen an irrevocable designation. We remind clients to review their beneficiaries periodically so the right people are protected as life changes.
