Updating Military Life Insurance: Changing Your Beneficiary Details

Designating a beneficiary on a life insurance policy is one of the most important parts of the policy, as it ensures that your survivors receive the financial assistance they need in the event of your death. The process for changing beneficiaries varies depending on the type of military life insurance policy you have. For example, if you have Servicemembers' Group Life Insurance (SGLI) and are in any uniformed service except for the Public Health Service, you can now use the SGLI Online Enrollment System (SOES) to make changes to your beneficiary information without completing a paper form. On the other hand, if you have Veterans' Group Life Insurance (VGLI), you can update your beneficiary by accessing your policy online, downloading and completing the VGLI Beneficiary Designation/Change Form, and then either faxing or mailing the completed form. It's important to note that only the policy owner is authorized to change beneficiaries and that certain policies may require a notarized signature for any changes.

Characteristics of Changing Beneficiaries on Military Life Insurance

Designating a beneficiary

If you have a beneficiary that is designated by a court order, you must obtain an amended court order to make any changes and present that court order to your insurance company. If you are naming a minor as a beneficiary, be aware that many life insurance companies won't pay the proceeds directly to minors. You must often set up a trust or designate a guardian. If you don't, the court will do so, which can be an expensive and time-consuming process.

You should also name more than one beneficiary, in case the primary beneficiary dies before you or something happens to both of you at the same time. The best course of action is to discuss any questions you have with your insurance agent and make an informed and thoughtful decision.

It is very important to make sure your beneficiary information is always up to date. This will make it much easier for your family members to file a claim and receive the benefit quickly. You should review your beneficiary information at least once a year to ensure everything is current. Even if you have the same beneficiary, they might have changed addresses. A regular beneficiary review each year will ensure you capture these changes.

Certain life events, such as marriage, the birth of a child, or divorce, should also trigger a review of your beneficiary information. This will save your family members a lot of unnecessary grief in the future.

Changing beneficiaries

Servicemembers' Group Life Insurance (SGLI)

If you are in any uniformed service, except for the Public Health Service, and have full-time SGLI coverage, you can now update your beneficiary information using the SGLI Online Enrollment System (SOES). SOES is accessible through www.dmdc.osd.mil/milconnect, under the Benefits Tab. This allows service members to make changes to their life insurance coverage and beneficiary information without filling out any paper forms or visiting their personnel office.

Veterans' Group Life Insurance (VGLI)

To update your VGLI beneficiary, start by accessing your VGLI Policy online. Then, download and complete the SGLV 8721, VGLI Beneficiary Designation/Change Form. You can either fax this form to 1-800-236-6142 or mail it to OSGLI, P.O. Box 41618, Philadelphia, PA 19176-9913.

Other VA Life Insurance Policies

For VA Life Insurance policies with numbers beginning with V, RH, J, RS, K, or W, the fastest way to update your beneficiary is through the Online Policy Access website. After creating an online account and logging in, you can update your beneficiary information, which will be immediately sent to the records office.

Alternatively, you can download and complete the 29-336, Designation of Beneficiary and Optional Settlement form. This form can be mailed to VARO&IC (B&O), P.O. Box 8638, Philadelphia, PA 19101.

Important Considerations

• Only the policy owner can change beneficiaries.
• The owner may change the beneficiary at any time before the death of the insured and without the consent or knowledge of the beneficiaries.
• Some policies require a notarized signature for beneficiary changes, so check with your insurer.
• If a beneficiary is designated by a court order, an amended court order is required to make any changes.
• When naming a minor as a beneficiary, be aware that many life insurance companies will not pay proceeds directly to minors. Instead, you may need to set up a trust or designate a guardian.
• It is recommended to name more than one beneficiary in case the primary beneficiary dies before you or something happens to both of you.
• It is important to review your beneficiary information at least once a year and after significant life events like marriage, divorce, or the birth of a child.

For further assistance, you can always contact your insurance agent or the relevant support offices.

Naming a minor

Understanding the Challenges

It's important to recognize that minors typically cannot directly receive the proceeds of a life insurance policy. Most states require insurers to pay a legal guardian or trustee instead of a minor. This means that you'll need to make additional arrangements to ensure your wishes are fulfilled.

Naming a Guardian or Trustee

If you're considering naming a minor as a beneficiary, you'll likely need to designate a guardian or trustee who will manage the proceeds of the policy on their behalf until they reach adulthood. This person will be responsible for overseeing the distribution of funds and acting in the minor's best interests.

Setting Up a Trust

One option is to set up a trust for your child. This allows you to appoint a trusted individual, such as a family member or close friend, as the trustee. They will manage the finances until your child comes of age. You can specify any instructions or guidelines for how the proceeds should be spent, such as on education or living expenses.

Utilizing a UTMA Account

Another option is to utilize a Uniform Transfers to Minors Act (UTMA) account. This involves naming a custodian for your child and setting up an account with a financial institution. The life insurance payout is then directed into this account. The rules for serving as a custodian vary by state, so be sure to understand the specific requirements in your jurisdiction.

Discussing with a Professional

It's always a good idea to consult with a knowledgeable life insurance representative or a lawyer skilled in family law. They can guide you through the process, ensure you're complying with any legal requirements, and help you make informed decisions about naming a minor as a beneficiary.

Remember, the process of naming a minor as a beneficiary may vary depending on the specific insurance provider and jurisdiction. It's important to review the policies and regulations associated with your military life insurance plan to ensure you're taking the appropriate steps to provide for your loved ones.

Number of beneficiaries

It is important to designate more than one beneficiary when taking out life insurance. This is because, in the event that the primary beneficiary passes away before you or you both die simultaneously, your insurance proceeds will be left without a designated recipient.

You can name any individual, legal entity, or estate as your beneficiary, and you can change your beneficiary at any time before your death without needing the consent or knowledge of the beneficiaries. However, if you have a beneficiary that is designated by a court order, you must get an amended court order to make any changes. If you are naming a minor as a beneficiary, be aware that many life insurance companies will not pay the proceeds directly to minors. Instead, you must often set up a trust or designate a guardian. If you do not, the court will do so, which can be an expensive and time-consuming process.

You should review your beneficiary information at least once a year to ensure everything is current. Certain life events, such as marriage, the birth of a child, or divorce, should also trigger a review of your beneficiary information. This will save your family members a lot of unnecessary grief in the future.

Amending court orders

For incompetent veterans, only a court-appointed guardian can change the beneficiary designation. This guardian must obtain a specific court order authorizing them to make the change. The guardian should then complete the form and include a copy of the guardianship documents and the specific court order. To become a court-appointed guardian and obtain the necessary court order, contact your state court system.

It is important to keep your beneficiary information up to date to ensure that your family members can file a claim and receive benefits quickly in the event of your death. Review your beneficiary information regularly and after significant life events such as marriage, divorce, or the birth of a child.

Frequently asked questions