What is a Beneficiary?

It’s not something we like to think about, but it’s important to make your intentions clear when choosing whom to leave your assets to in the event of your death.

Your beneficiary is the person you designate to receive your life insurance benefits. This includes any benefits payable under Basic Life. You receive the benefit payment for a dependent’s death if you’ve elected dependent life insurance.

Name a primary and contingent beneficiary to make your intentions clear. What’s the difference? Your primary beneficiary is first in line to receive the benefit from your life insurance policy. Typically, this is your spouse, children, or other family members. In case your primary beneficiary dies before you or at the same time as you, you can name a secondary or contingent beneficiary. Your beneficiary can be a specific person, a charity, your estate, or a trust.

When choosing your beneficiaries, indicate their full name, address, Social Security number, relationship, date of birth, and distribution percentage. Please note that in most states, benefit payments cannot be made to a minor.

If you elect to designate a minor as beneficiary, all proceeds may be held under the beneficiary’s name and will earn interest until the minor reaches age 18. Contact Human Resources or your own legal counsel with any questions.

Content by Lockton Dunning Benefits with info from https://www.securian.com/insights-tools/articles/naming-a-life-insurance-beneficiary.html