Understanding Group Life Insurance Beneficiaries And Their Rights

When you take out a life insurance policy, you need to designate a beneficiary – the person or entity who will receive the benefits from your policy or accounts when you die. This is an important decision, as a beneficiary designation can't be changed or corrected after your death. For group insurance policies, the order typically starts with your spouse, then your children, then your parents, and then your estate. This article will explain more about what a group life insurance beneficiary is and how to choose one.

Who can sign the designation of beneficiary

Only the insured can sign the designation of beneficiary. However, if you have assigned your insurance using an RI 76-10 Assignment form, only the assignee(s) has the right to make a designation.

The primary beneficiary is the person (or persons) first in line to receive the death benefit from your life insurance policy. This is typically your spouse, children or other family members. In the event your primary beneficiary dies before or at the same time as you, most policies also allow you to name at least one backup beneficiary, called a 'secondary' or 'contingent' beneficiary. If the primary beneficiaries are all deceased, the secondary beneficiaries receive the death benefit.

If there is no default order specified in your policy, the payout may be paid to your estate, or may also be held in probate. Many financial products, including life insurance benefits, are generally not governed by your will, so the only way to make sure your policy's benefits are distributed how you intend is to make sure you've named a beneficiary for all of your policies and accounts.

How to designate a beneficiary

Designating a beneficiary is an important part of owning life insurance. A beneficiary is the person or entity that you legally designate to receive the benefits from your financial products. This is the person who will receive your assets or the payout (called a 'death benefit') from your life insurance policies.

For group insurance policies, the order typically starts with your spouse, then your children, then your parents, and then your estate. If there is no default order specified in your policy, the payout may be paid to your estate, or may also be held in probate.

Only the insured can sign the designation of beneficiary. If you assigned your insurance (using an RI 76-10 Assignment form), only the assignee(s) has the right to make a designation. Your employing office must receive the completed form before you die. A designation delivered on a weekend or Federal holiday is not 'received' and is not valid until the next workday. If you die before your employing office receives the new designation, the Office of Federal Employees' Group Life Insurance will pay benefits according to the next prior designation on file or under the order of precedence, if there is no prior designation.

It's important to keep your beneficiary designations up to date as your life changes (marriage, children, divorce, etc.).

The order of beneficiaries

It is important to keep your beneficiary designations up to date as your life changes (marriage, children, divorce, etc.). A beneficiary is the person or entity that you legally designate to receive the benefits from your financial products. Only the insured can sign the designation of beneficiary. If you die before your employing office receives the new designation, the Office of Federal Employees' Group Life Insurance will pay benefits according to the next prior designation on file or under the order of precedence, if there is no prior designation.

Primary and secondary beneficiaries

A beneficiary is the person or entity that you legally designate to receive the benefits from your financial products, including life insurance, when you die.

For group insurance policies, the order typically starts with your spouse, then your children, then your parents, and then your estate. If there is no default order specified in your policy, the payout may be paid to your estate, or may also be held in probate.

A primary beneficiary is the person (or persons) first in line to receive the death benefit from your life insurance policy. This is typically your spouse, children or other family members. In the event your primary beneficiary dies before or at the same time as you, most policies also allow you to name at least one backup beneficiary, called a “secondary” or “contingent” beneficiary. If the primary beneficiaries are all deceased, the secondary beneficiaries receive the death benefit.

It's important to keep your beneficiary designations up to date as your life changes (marriage, children, divorce, etc.). Many financial products — including life insurance benefits — are generally not governed by your will, so the only way to make sure your policy's benefits are distributed how you intend is to make sure you've named a beneficiary for all of your policies and accounts.

How to update beneficiary designations

A beneficiary is the person or entity that you legally designate to receive the benefits from your financial products. For group insurance policies, the order typically starts with your spouse, then your children, then your parents, and then your estate.

To update your beneficiary designations, you should complete a Beneficiary Designation form and return it to your human resources department. You can also update your TIAA beneficiary designation online or by mail. If you are unsure how to update your beneficiary designations, it is best to contact your human resources department or financial institution.

It is important to keep your beneficiary designations up to date as your life changes (marriage, children, divorce, etc.). You should periodically review your beneficiary designations and update them if needed. This is because life circumstances sometimes change, and the beneficiary you may have named before might not be the one you would choose today.

Only the insured can sign the designation of beneficiary. If you assigned your insurance (using an RI 76-10 Assignment form), only the assignee(s) has the right to make a designation. Your employing office must receive the completed form before you die. A designation delivered on a weekend or Federal holiday is not "received" and is not valid until the next workday. If you die before your employing office receives the new designation, the Office of Federal Employees' Group Life Insurance will pay benefits according to the next prior designation on file or under the order of precedence, if there is no prior designation.

Frequently asked questions