Changing Life Insurance Beneficiaries: A Guide For Bankers

A life insurance beneficiary is the person or entity chosen to legally receive the death benefit from your life insurance policy when you pass away. While you are not required to name a beneficiary, it is important to do so to ensure that the policy benefits will go to your desired recipient. You can name a primary beneficiary, who is your first choice to receive the benefit, and a contingent beneficiary, who will receive the benefit if the primary beneficiary cannot be found. You can change your beneficiary at any time by contacting your insurance company and filling out a change of beneficiary form. This process may vary depending on the provider.

Who can change the beneficiary?

Only the policyholder can change the beneficiary of a Bankers Life Insurance policy. The policyholder is the person who has taken out the insurance policy. They can change the beneficiary at any time, without penalty or fee, and they can choose more than one beneficiary.

There are, however, three instances when a policyholder may need approval to change the beneficiary:

• If they have given power of attorney to someone else
• If they live in a community property state
• If they have named an irrevocable beneficiary

If the policyholder has died, no one can change the beneficiary.

When to change the beneficiary

Changing the beneficiary of your life insurance policy is a simple process, but it's important to know when to make that change. Here are some instances when you should consider changing the beneficiary:

• Life Changes: It is recommended to review your policy regularly and adjust your coverage after significant life events. This includes events such as the birth or adoption of a child, the death of a beneficiary, or a new estate plan involving trusts. If your life circumstances have changed, such as getting married, divorced, or having a child, you may want to update your beneficiary accordingly.
• Previous Beneficiary is Deceased: If your named beneficiary passes away, you should change the designation to ensure that the death benefit payout goes to the intended recipient.
• Change in Relationships: If you get divorced and/or remarried, you may want to update your beneficiary to reflect your current relationship status. In community property states, if you purchased your policy after getting married, you will need your spouse's permission to name someone else as the beneficiary.
• Beneficiary is a Minor: If you have young children or minor dependents, most insurance companies will require you to choose an adult custodian or legal guardian to manage the benefits until they reach the age of majority.
• Irrevocable Beneficiary: If you have named an irrevocable beneficiary, which is rare, you will need their approval to remove them from the policy or make any other changes.
• Regular Review: Even if none of the above events occur, it is a good idea to periodically review your policy and ensure that your chosen beneficiary still aligns with your wishes.

Remember, as the policyholder, you can change your beneficiary at any time, and it is a straightforward process. By keeping your beneficiary up to date, you can ensure that your death benefit goes to the right people and that your wishes are honoured.

How to change the beneficiary

The policyholder can change their Bankers Life Insurance beneficiary at any time, but in specific cases, approval is needed to make a change. The policyholder is the only person allowed to make changes to the beneficiaries of their life insurance policy. The only exception is if the policyholder has granted someone power of attorney, a legal document that lets someone make financial, legal, or medical decisions on their behalf.

If you live in a community property state and bought your policy after you got married, you’ll need your spouse’s permission to name someone other than them as your beneficiary. Community property states include: Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, and Wisconsin.

You can also name any of your life insurance beneficiaries as revocable or irrevocable. Irrevocable beneficiaries are rare, and some people may name their children or spouse as an irrevocable beneficiary as part of a prenuptial agreement. You can change revocable beneficiaries at any time, but irrevocable beneficiaries can't be removed from a policy without their approval.

To change the beneficiary of your Bankers Life Insurance policy, contact your insurance company. The process for changing a beneficiary may differ depending on the provider. Generally, you will need to fill out a change of beneficiary form, which includes information such as the policyholder’s name, the new beneficiary’s name, and the reason for the change. You may also need to provide a copy of the policyholder’s death certificate if the beneficiary is being changed due to their death. Once you complete the form, you must submit it to the insurance company for approval.

If your policy is with Bankers Conseco Life Insurance Company, you will need to print and fill out their specific form. You can then mail or fax the completed form and any accompanying documents back to Bankers Life Insurance.

Why change the beneficiary?

There are many reasons why you may want to change the beneficiary on your Bankers Life Insurance policy. A beneficiary is the person or people who will receive the death benefit payout in the event of your death. While you aren't required to name a beneficiary, it is highly recommended. If you don't name a beneficiary, the payout will become part of your estate, which can cause complications for your loved ones.

You may want to change your beneficiary if your life circumstances have changed. For example, if you have gotten married, divorced, or had a child, you may want to update your policy to reflect this. If you have named a previous spouse as a beneficiary but have since remarried, you will likely want to change the beneficiary to your current spouse.

It's also important to keep your policy up to date to ensure that the death benefit payout goes to the intended recipient. If you never change your beneficiary and they pass away before you, the payout will go to a contingent beneficiary or your estate. Once the payout becomes part of your estate, a court will decide who gets the money.

Other reasons to change your beneficiary include:

• The birth or adoption of a child
• The death of a beneficiary
• A new estate plan where trusts are being used

Remember, you can name more than one beneficiary and choose how much of the death benefit each person receives. You can also choose primary and contingent beneficiaries. A primary beneficiary is your first choice to receive the death benefit, while a contingent beneficiary is your second choice and will receive the benefit if the primary beneficiary is unable to.

Keeping your life insurance policy up to date is crucial to financially protect your family. By regularly reviewing your policy and making necessary changes, you can ensure that your beneficiary is the person you want to receive a payout when you die.

What to do if you are a beneficiary

If you are a beneficiary, you will need to take action when your loved one passes away. You won't receive your payout automatically; you will need to file a claim to get the death benefit that you're owed. You can use this money to replace lost income if the person who died helped pay your bills, or to cover funeral expenses and other end-of-life costs for the policyholder.

To file a claim, you will need a certified copy of the death certificate, and potentially other documents, like a claim form or a copy of the life insurance policy. Depending on the company's requirements, you can submit your claim either online, over the phone, in person, or by mail.

In your letter to the insurance company, state that you are looking for the documents you need to process a claim. Make sure to include:

• The policyholder's name and policy number
• Their cause of death
• Your relationship to the policyholder
• How you'd like to receive the money
• Your contact information

You may be asked for additional documentation, such as proof of your identity, as your claim is being processed. Different insurance companies have different deadlines, but your payout should be quick after the claim goes through. Most death benefits are distributed either as a lump-sum payout or in installments (like an annuity, which may be subject to taxes).

Sometimes a beneficiary may run into issues trying to claim their benefits. For example, if the policyholder passes away within two years of purchasing the policy, the insurer might need extra time to investigate the death. But generally, you should be able to receive your payout within no longer than 60 days.

Keep in mind, too, that as a beneficiary, you may also be responsible for tying up any loose ends in your loved one's finances.

Frequently asked questions