Why and How to Change Your Life Insurance Beneficiary

If you have dependents, such as children or a non-working spouse, you may have a life insurance policy. In fact, we hope you do! But as your life circumstances change, your policy needs to change as well.

When you purchased a life insurance policy (assuming you did), you named at least one beneficiary. This is the person or people who receive the proceeds of the policy in the event of your death. It was probably your spouse or child, or another relative for whom you would like to provide.

While you choose the amount of the life insurance benefits and the beneficiary when you purchase 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, which can be either revocable or irrevocable. Most policies have a revocable beneficiary designation which means you can change beneficiaries after the policy goes into effect.

Why might you want to change a beneficiary? Maybe the person or people you support have changed. Perhaps you have had or adopted a child. Perhaps someone in your family has died and you no longer need to support that person (or you need to support that person’s children instead). Perhaps you’ve divorced. Perhaps a child has reached adulthood and no longer needs your support.

Because there are so many possibilities, it’s a good idea to review your personal circumstances each year to determine if a change needs to be made. If it does, changing your beneficiary designation is usually simple: just contact us (if we helped you purchase the policy) or the insurance company.

If you’re concerned about the beneficiaries of your life insurance policy, or think you need a policy, we can help. Call or email us for more information.