Who can you name as a life insurance beneficiary?

You can name pretty much anyone you like as a life insurance beneficiary as long as they have insurable interest. Many people name their spouse, children, parents or siblings as beneficiaries, but you can also name close friends. In some cases, policyholders may even choose to name a charity or other organization to receive the benefit.

Who receives the life insurance death benefit?

The primary beneficiary or beneficiaries of a policy receive the death benefit. However, if the primary beneficiaries are unable to accept the death benefit for whatever reason, then the payout goes to the secondary beneficiary or beneficiaries. In order to receive the payout, beneficiaries must first file a claim.

How does a divorce affect your life insurance policy?

If you get divorced, your life insurance beneficiary doesn’t automatically change. You’ll need to go in and adjust your beneficiary to align with your current wishes. However, even if you choose to remove your ex-spouse from your policy, in some states, they may still be eligible to receive a portion of the benefits due to regulatory requirements. Before making changes to your policy after a divorce, you should consult with an attorney to ensure you’re making an informed decision.

Life Insurance Beneficiary Rules: Everything You Should Know

About Margaret Wack

Margaret Wack is a freelance writer who covers insurance, saving, investing, banking, and more. Margaret earned a bachelor's degree in classics, comparative literature, and poetry from Smith College and a master's degree from St. John's College.

Life Insurance Beneficiary Rules You Should Know

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