Short answer
To change a life insurance beneficiary, the policy owner requests a change-of-beneficiary form from the insurer, fills in the new beneficiary's full legal name, relationship, date of birth and share, signs it and returns it. The change takes effect once the insurer records it, so ask for written confirmation. An irrevocable beneficiary must consent first.
Key takeaways
- Only the policy owner can change a beneficiary, and an irrevocable beneficiary must agree first.
- Your beneficiary form usually decides who gets paid, even if your will says otherwise.
- Name a contingent beneficiary in case your first choice dies before you.
- Insurers generally will not pay a large sum directly to a minor child.
- Keep the insurer's written confirmation of the change with your policy papers.
Who can change the beneficiary
The policy owner has the right to change the beneficiary. The owner is often the insured person, though not always. If your spouse owns a policy on your life, only your spouse can make the change. For life insurance through work, you usually make changes through your employer's benefits office or the plan's website.
Most beneficiaries are revocable, which means you can change them at any time without their permission. An irrevocable beneficiary is different. That person must agree in writing before you can remove them or reduce their share. A divorce settlement or other court order may require you to keep a certain person on the policy, so check any orders that apply to you.
When to review your beneficiaries
A beneficiary choice that made sense years ago may not fit your life today. Many people name beneficiaries once and never look at the form again. Check the names on your policy, or on your insurer's website, whenever one of these life events happens.
- You marry, divorce or separate
- A child or grandchild is born or adopted
- A beneficiary dies or becomes seriously ill
- A beneficiary relies on government benefits, such as Medicaid, that an inheritance could affect
- You create or update a will or trust
How to change your beneficiary step by step
Changing a beneficiary is usually simple and free. Most insurers use a short form, and many let you make the change online. Rules differ by company, so follow your insurer's instructions. If you are unsure what your current form says, an independent licensed agent can review your policy at no cost.
- Find your policy number on your policy, annual statement or premium notice.
- Ask your insurer for a change of beneficiary form, or log in to your online account.
- Write each beneficiary's full legal name, relationship to you and date of birth. Some forms also ask for a Social Security number.
- Name primary and contingent beneficiaries, and make sure the shares in each group add up to 100 percent.
- Sign and date the form. Add a witness, notary or spousal signature if the form asks for one.
- Send the form the way your insurer requests and keep a copy.
- Watch for written confirmation, and call if you do not hear back within a few weeks.
Rules that can affect your change
Your beneficiary form usually decides who receives the money, even if your will names someone else. Updating your will alone can leave the wrong person on the policy. Divorce raises a similar issue. Some states automatically remove an ex-spouse after a divorce, while others do not. Even where these laws exist, they may not apply to group coverage through work. The safest choice is to update the form yourself.
Where you live can matter too. In community property states, such as California and Texas, your spouse may have a legal claim to part of the payout if you paid premiums with money earned during your marriage. Your insurer may ask your spouse to sign if you name someone else. If you are unsure how your state's rules apply, ask your insurer or an attorney.
Naming children, a trust or your estate
Insurers generally will not pay a large sum directly to a minor child. If you name a minor, a court may need to appoint someone to manage the money, which adds time and cost. You can plan ahead by naming a trust for the child, or an adult custodian under your state's transfers to minors law.
Naming your estate, or leaving no living beneficiary, usually sends the money through probate. Probate can delay the payout for months, and creditors of the estate may have a claim to it. Payouts to a named person or trust are usually faster. A per stirpes designation can pass a beneficiary's share to their children if that beneficiary dies before you. Ask whether your insurer offers this option.
Frequently asked questions
Can I change my life insurance beneficiary without telling them?
In most cases, yes. If your beneficiaries are revocable, you do not need their permission, and insurers generally do not notify them of a change. An irrevocable beneficiary is the exception and must consent in writing. A court order, such as a divorce decree, may also require you to keep certain people on the policy.
Does a will override a life insurance beneficiary?
Usually not. Life insurance passes by contract, so the insurer pays the beneficiaries named in its records. Your will generally controls the money only if your estate is the beneficiary or no named beneficiary is alive. To keep your plans in sync, review your beneficiary form whenever you update your will.
How long does it take to change a beneficiary on life insurance?
Many insurers process a change within a few days to a few weeks after they receive a complete form. Online changes are often faster. Missing signatures or shares that do not add up can cause delays, so check the form before you send it. Keep following up until you have written confirmation that the change is on file.
Can someone with power of attorney change my beneficiary?
Sometimes. It depends on the wording of your power of attorney document and your state's laws. In many states, the document must clearly grant the power to change beneficiaries, and insurers usually review it before accepting a change. If you want the person you name to have this power, talk with an estate planning attorney.
What happens if my beneficiary dies before me?
If you named other primary beneficiaries, they usually share the money. If no primary beneficiary is alive, the insurer pays your contingent beneficiary. With no living beneficiary at all, the money usually goes to your estate and through probate. An independent licensed agent can review your policy at no cost and help you confirm who is listed.
Related guides
- How to Read and Understand Your Life Insurance Policy
- How to Find a Lost or Forgotten Life Insurance Policy
- What Happens During a Free Life Insurance Policy Review
Have a policy with a specific company? Find your carrier for help with that policy.