If you have dependents, such as children or a nonworking spouse, you probably have a life insurance policy. We hope you do. But it is important to remember that as your life circumstances change, your policy needs to change as well.
When you purchased a life insurance policy, you named at least one beneficiary (the person or people who will receive the proceeds of the policy in the event of your death, usually a spouse, child, or another relative for whom you would like to provide).
While you chose the amount of the life insurance benefits and the beneficiary when you purchased the policy, you may be able to alter them during your lifetime, depending on the designation type you chose at the time of policy issuance.
Specifically, when you purchased your policy, you probably chose the type of beneficiary designation: revocable or irrevocable. A revocable designation allows you to change beneficiaries after the policy is in force, while an irrevocable designation does not allow you to do so without the consent of the beneficiary. Most policies have a revocable beneficiary designation.
Why would you want to change your beneficiary designation? A variety of circumstances can warrant this action.
You might want to change a beneficiary if the life circumstances of the person or people you support have changed. Perhaps you have had a child or adopted one. Perhaps someone in your family has died, and you do not need to support that person (or you need to support that person’s children). Perhaps you have divorced. Perhaps a child has reached adulthood and no longer needs your support.
Because there are so many variables that can affect your policy, it is a good idea to review your personal circumstances each year to determine whether a change needs to be made.
If it does, changing your beneficiary designation is usually an easy task. Simply contact the insurance company and ask how to proceed.