Updated: October 16, 2025
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When you buy a life insurance policy, you'll name a beneficiary. Primary beneficiaries receive the death benefit first; contingent beneficiaries are next in line.
You can change revocable life insurance beneficiaries anytime, but irrevocable beneficiaries can't be changed without their consent.
If your life insurance has no beneficiary, the death benefit goes to your estate, creating delays and making funds accessible to creditors through probate.
Most people name their spouse, significant other, children or parents as beneficiaries, but you can choose a sibling, close friend or trust. Think about where the money would help most if you die.
Community property states may require you to name your spouse as a life insurance beneficiary. If you name someone else, your spouse may still be entitled to 50% of the proceeds.
Life insurance beneficiary rules after divorce may require updates to reflect current relationships and obligations.
Life insurance regulations vary by state. Consult with a licensed insurance professional or attorney in your state for guidance specific to your situation.
Many parents buy life insurance to provide for their children if they die. You can name minors as life insurance beneficiaries, but they can't receive the benefit directly if they're under 18. So it's usually best to name a spouse or other caregiver as the beneficiary.
Life insurance beneficiaries don't have to be family members; you can name charities or other organizations. If your loved ones are financially secure, charitable beneficiaries let you support causes you care about after your death.
A life insurance beneficiary must be able to accept an inheritance and sign documents, so you can't legally name your pet as a beneficiary.
You can set up a trust naming the pet's guardian as the beneficiary instead.
A party has insurable interest when they depend on the insured financially and couldn't support themselves if the policyholder dies. Your spouse and dependent children likely have an insurable interest.
You can't take out a life insurance policy on just anyone without insurable interest. You couldn't take out a policy on your coworker, for example.
Life insurance has two main beneficiary types: primary and contingent beneficiaries. Primary beneficiaries are the main recipients of your policy's death benefit.
Contingent beneficiaries receive the death benefit only if primary beneficiaries can't claim it.
Your primary beneficiary receives your life insurance death benefit first. You can name multiple primary beneficiaries, like naming both of your younger siblings. The death benefit goes to primary beneficiaries before anyone else.
Contingent beneficiaries receive your life insurance death benefit only if your primary beneficiary dies before you.
For instance, you name your spouse as primary beneficiary and your children as contingent beneficiaries. If your spouse dies before you, your children receive the death benefit.
The beneficiary type you choose affects your estate planning and financial flexibility.
Irrevocable beneficiaries affect your estate taxes differently than revocable ones. The death benefit gets removed from your taxable estate, lowering estate taxes. But the IRS treats irrevocable beneficiaries as gift recipients, which may trigger gift taxes on your policy's value. You can't redirect the funds without the beneficiary's written consent if your situation changes.
Your beneficiary choice depends on your life stage, family structure and financial obligations. Here's who to name based on your situation:
Name parents as primary beneficiaries with siblings as contingent beneficiaries. If you support aging parents, prioritize those who rely on your income.
Name your spouse as primary beneficiary with children as contingent beneficiaries. Think about whether your surviving spouse can manage finances and care for dependents alone.
Remove ex-spouses unless your divorce decree or child support obligations require them. Name children directly or create trusts for minor children.
Balance obligations to your current spouse and children from previous relationships. Split benefits or use trusts to ensure fair distribution.
List who depends on your income for daily expenses, debt payments or future needs like college tuition. Those with the greatest financial need should receive priority.
Review your beneficiaries annually and after major life changes like marriage, divorce, births, deaths or significant income changes. Update designations within 30 days of life changes.
Update your beneficiaries whenever your financial responsibilities or family structure changes.
Naming a beneficiary has legal and financial consequences. These rules govern how designations work and what happens when circumstances change, like divorce or a beneficiary's death. Understanding these rules ensures the right person gets the payout and prevents disputes or delays.
When you buy a life insurance policy, you can name one or multiple beneficiaries. If you don't name a beneficiary, your death benefit goes to your estate.
You're not required to name a life insurance beneficiary. If your life insurance has no beneficiary, the proceeds become part of your estate and probate court oversees distribution.
But this option it makes it harder for your loved ones and dependents to access the funds they need.
You can name multiple life insurance beneficiaries, both primary and contingent. You might name your spouse as primary beneficiary if you're married.
If you have adult children, you could name all of them as contingent beneficiaries who'd receive the death benefit if your spouse dies before you.
If you're buying life insurance on another person with yourself as beneficiary, you must get their written consent and prove insurable interest. Insurable interest means you depend on them financially and would suffer financial hardship if they died.
Parents buying policies on themselves and naming you as beneficiary is simpler than buying coverage on someone else's life.
If you experience a major life event like divorce, your beneficiary list won't update automatically. You must manually update beneficiary designations to match your current wishes.
You might keep an ex-spouse as beneficiary if they'd care for your children if you died.
Some life insurance beneficiary designations are irrevocable: they can't be changed unless the beneficiary agrees to give up their right. Some policyholders name dependent children as irrevocable life insurance beneficiaries.
Think carefully before listing someone as irrevocable because it's challenging to change later. Your life insurance policy is separate from your will or estate, so name a beneficiary for your life insurance even if you've set up a will.
Your life insurance policy is separate from your will or other aspects of your estate, so it's best to name a beneficiary for your life insurance policy even if you've already set up a will.
When naming a life insurance beneficiary, you'll provide specific information for a smooth benefit transfer. Here's what life insurance companies typically require:
Use your beneficiary's full legal name to avoid mismatches or legal issues.
State your connection to the beneficiary: spouse, child, parent, sibling or friend.
Your insurer uses this for identification and tax purposes.
Provide the beneficiary's address, phone number and email so your insurer can reach them.
This confirms the beneficiary's age, especially if they're under 18.
If you're naming multiple beneficiaries, specify what percentage each should receive.
Include any conditions or stipulations you want attached to the benefit.
Life events like divorce affect your life insurance beneficiary designation. Update beneficiaries after these events so your policy reflects your current wishes. Double-check all information if you're naming minors as beneficiaries or choosing irrevocable beneficiaries. This prevents complications and honors your wishes.
Check with your life insurance provider for any additional requirements.
Picking a beneficiary requires careful thought and regular updates. Avoid these common mistakes:
Avoiding these mistakes saves your loved ones from legal headaches and distributes your assets properly.
Update your life insurance beneficiaries regularly to reflect life changes and fulfill your intentions.
Getting divorced doesn't automatically change your life insurance beneficiary. To remove your ex-spouse as beneficiary, you must manually update your policy.
You may still be legally required to share part of the death benefit with your ex-spouse, especially if you share custody of children. You might need to keep your ex-spouse as beneficiary so they can provide for your children if you die.
Laws and life insurance beneficiary rules after divorce vary by state. Consult an attorney to understand your obligations.
If you don't update your life insurance after divorce, your ex-spouse might get more of the death benefit than you want. After any major life event, review your policy to make sure the beneficiaries match your wishes.
Your life insurance beneficiaries should reflect major life changes, like marriage, divorce, a new child or a loss. Update your beneficiaries so your benefits go to the right people.
Reach out to your life insurance company. It'll walk you through its process.
Complete a "Change of Beneficiary" form. This documents your new beneficiary choice. Fill it out accurately to avoid complications.
You'll likely need additional documents for verification along with the change form. This could include ID or legal papers, depending on your provider's requirements.
Follow up with your insurance company to confirm it updated your beneficiary information correctly.
You can't change a life insurance beneficiary after the policyholder dies.
Beneficiaries must file a claim with the life insurance company to receive a payout. Primary beneficiaries receive the death benefit first. If the primary beneficiary dies before the policyholder, contingent beneficiaries can file a claim.
Minors can't directly receive death benefits. Funds are held by a court-appointed guardian, trustee or trust structure until the minor reaches the age of majority (usually 18 or 21, depending on state law).
Certified death certificate
Completed claim forms from the insurance company
Policy number and policyholder information
Beneficiary identification (driver's license or passport)
Proof of beneficiary relationship to the deceased
Life insurance beneficiaries must file a claim with the insurer to receive a payout. The process isn't automatic. If a policy has multiple beneficiaries, each must make a separate claim to receive their portion.
Claim Processing Timeline: Most insurers process death benefit claims within 14 to 60 days after receiving all required documentation. Simple claims with complete paperwork often process faster, while complex situations may take longer.
Primary beneficiaries receive the death benefit first. If the primary beneficiary is deceased, a contingent beneficiary can file a claim.
Contingent beneficiaries receive a payout only if the primary beneficiary can't. This usually means the primary beneficiary died, but they may also be unreachable or have declined the payout.
You can choose how to distribute your life insurance payout. Divide it equally between named primary beneficiaries, or assign specific percentages. Your spouse might get 50% while your children split the other 50%.
Minors can be named beneficiaries but can't receive death benefits until they turn 18. Proceeds go to their legal guardian. Set up a trust to ensure funds are used to provide for your children, grandchildren or other dependent minors.
Missing or incomplete documentation
Death occurring during the contestability period (first two years)
Suspicious circumstances requiring investigation
Disputes between multiple beneficiaries
Outstanding policy loans or unpaid premiums
Certain circumstances would prohibit a death benefit payout to beneficiaries. These include application fraud, nonpayment of premiums, contestable circumstances, or not providing proper documentation (such as a death certificate).
— Mark Friedlander, Director, Corporate Communications, Insurance Information Institute
You can split payouts between multiple beneficiaries equally, by percentage or to benefit younger generations if a beneficiary dies. Change how your policy's payout is split anytime.
Per capita divides the benefit "per head," where each beneficiary receives an equal sum. This works well when naming multiple adult children as beneficiaries.
If a beneficiary dies, the payout is divided equally between the remaining beneficiaries.
Per stirpes means "by branch" and passes death benefits along the family lineage. If you list three adult children as primary beneficiaries and one dies, their children (your grandchildren) would receive their parent's portion.
You can assign different percentages to different beneficiaries. Your spouse might receive 70% and your parents or children 30%. This works when beneficiaries have different levels of financial dependence on you.
These distribution methods ensure beneficiaries receive their intended shares. Change beneficiaries and adjust percentages to match life changes. Review and update your beneficiary designation regularly.
If you don't name a life insurance beneficiary, the death benefit goes to your estate. This triggers probate, a court process that oversees asset distribution.
Probate is lengthy and costly and delays the death benefit distribution to your loved ones.
When the death benefit is part of your estate, creditors can access it. Outstanding debts get paid off using the death benefit, reducing what goes to your heirs.
Your life insurance beneficiary designation overrides your will. If your will names one person but your policy lists someone else, the policy beneficiary receives the death benefit.
Your beneficiary designation is your final word on who gets your life insurance payout. Update your beneficiary after major life changes like marriage, divorce or having children.
Your life insurance beneficiary receives your policy benefits after you die. Most people name close family members like spouses, parents or siblings, but you can name multiple beneficiaries.
Your policy type and beneficiary choice affect the payout timeline. With proper beneficiary designation, beneficiaries file claims with your insurance company and receive payouts within 14 to 60 days.
Life insurance policies without beneficiaries send proceeds to your estate, complicating fund distribution and delaying payments to your heirs.
Ensure you are getting the best rate for your insurance. Compare quotes from the top insurance companies.
Life insurance protects the beneficiary, not the policyholder. Here are answers to common questions about life insurance beneficiaries:
A life insurance beneficiary is a person or entity you designate to receive the death benefit from your policy when you die.
You can name anyone as a life insurance beneficiary as long as they have insurable interest. Most people name their spouse, children, parents or siblings, but you can also name close friends.
Your spouse isn't automatically your life insurance beneficiary. You must name them on your policy for them to receive the benefit.
You can also name a charity or other organization to receive the benefit.
A contingent beneficiary for life insurance receives the benefit if the primary beneficiary can't, ensuring the proceeds go where you intended.
Primary beneficiaries receive the death benefit. If primary beneficiaries can't accept it, contingent beneficiaries receive it.
Beneficiaries must file a claim to receive the payout.
If you get divorced, your life insurance beneficiary doesn't automatically change. You'll need to update your beneficiary.
Even if you remove your ex-spouse from your policy, some states may still require them to receive a portion of the benefits. Consult with an attorney before making changes after a divorce.
You can name multiple life insurance beneficiaries and define what portion of the benefit each receives.
You can split life insurance beneficiaries by assigning specific percentages of the death benefit to each or through per capita or per stirpes distributions.
If your primary beneficiary dies before you and no contingent beneficiary is listed, the death benefit becomes part of your estate. This triggers probate, delaying distribution and making funds accessible to creditors.
When life insurance has no beneficiary, the death benefit transfers to the policyholder's estate by default.
When life insurance goes to the estate, it undergoes probate, a court process that oversees asset distribution. This delays when heirs receive their inheritance and may increase the estate's tax liability.
When the life insurance policy owner dies before the insured person, the policy stays active as long as premiums continue. Policy ownership transfers according to your policy terms or the deceased owner's estate plans, but beneficiaries still receive death benefits when the insured person dies.
Life insurance companies don't automatically contact beneficiaries. Beneficiaries must file a claim to start the payout process.
A beneficiary typically has no time limit to claim a life insurance policy, but filing sooner prevents complications with unclaimed funds.
If the beneficiary doesn't claim the life insurance, the proceeds may be considered unclaimed property and turned over to the state.
To change the beneficiary on life insurance, contact your insurer to fill out a "Change of Beneficiary" form and submit any required documentation.
Only the policy owner can change the beneficiary on a life insurance policy.
To find out if you're a beneficiary on a life insurance policy, contact the insurance company directly or review the policy documents if available.
To collect death benefits as a life insurance beneficiary, file a claim with the insurance company, provide a death certificate and complete required forms. Payment is processed within 14 to 60 days.
If primary beneficiaries are deceased, the death benefit goes to any contingent beneficiaries listed. If there are none, the death benefit goes to the estate.
Child support agencies can claim life insurance proceeds from a beneficiary if back child support is owed, depending on state laws and the policy's terms.
If one of two primary beneficiaries dies, the surviving beneficiary receives the full death benefit unless the policy specifies "per stirpes" distribution.
To designate someone as your life insurance beneficiary, provide their full legal name, relationship to you, Social Security number or tax ID and contact information.
Having both primary and contingent beneficiaries ensures the death benefit goes where you intended, even if the primary beneficiary can't accept it.
If you designate an irrevocable primary beneficiary, you can't change the beneficiary without their consent. This legally protects the beneficiary's rights to the death benefit.
The life insurance beneficiary designation takes precedence over a will. The policy's named beneficiaries receive the death benefit directly, even if a will states otherwise.
Knowing who can be your life insurance beneficiary and the rules around naming them protects your family's financial future. We researched beneficiary designation requirements, the differences between primary and contingent beneficiaries and state-specific rules that affect benefit distribution.
We analyzed 1,488 life insurance quotes alongside customer satisfaction ratings, financial stability reports and product offerings to rank the best life insurance companies. Once you decide on your beneficiary, you'll need an insurer that offers competitive rates and reliably pays claims to your loved ones.
Our Research Approach
We created a scoring system to evaluate what matters most when your beneficiaries file a claim: financial strength, customer service quality and fair pricing. Companies earn up to five points in each category, which we use to calculate an overall MoneyGeek score out of 100.
We chose insurers based on their national coverage and ability to provide online quotes.
Our Scoring System
We weighted each category based on its importance to beneficiaries receiving payouts:
What We Measured
Each company's score includes:
Our Sample Customer Profile
We used this standard profile to gather quotes:
We modified this profile by age, gender, height, weight, tobacco use, health rating and location to collect quotes across different customer types. We also gathered quotes for various term lengths and coverage amounts to identify cost patterns that help families choose appropriate protection levels.
Premiums reflect our standard profile unless noted otherwise. Coverage costs and company information were updated in 2025.
About Mark Fitzpatrick
Mark Fitzpatrick, a Licensed Property and Casualty Insurance Producer, is MoneyGeek's resident Personal Finance Expert. With over five years of experience analyzing the insurance market, he conducts original research and creates tailored content for all types of buyers. His insights have been featured in publications like CNBC, NBC News and Mashable.
Fitzpatrick holds a master’s degree in economics and international relations from Johns Hopkins University and a bachelor’s degree from Boston College. He's also a five-time Jeopardy champion!
Passionate about economics and insurance, he aims to promote transparency in financial topics and empower others to make confident money decisions.
