Q. What happens if there is no named beneficiary on my policy when I pass away?
A. On adult policies, unless otherwise stated, the proceeds of the policy would be paid to the spouse at the date of application, if surviving. Otherwise, all children in equal shares. If there is no spouse or children, the proceeds are paid to your estate.
Q. What is an estate?
A. An estate is all property assets and debts remaining after a person passes away. Proceeds from insurance policies are assets that are included in an estate.
Q. If I divorce and remarry will proceeds automatically go to my new spouse?
A. No. A subsequent marriage will not alter the beneficiary on file. Unless governed by your State laws or any court rulings, beneficiary changes can be made at any time. We advise keeping your beneficiary information current with changes in your family status.
Q. Can I select a friend as beneficiary for myself and my child?
A. Yes. You may select any person you wish as a beneficiary of your policy.
Q. Can benefits be paid to a child who is minor?
A. If a beneficiary is a minor at the time a claim is received there are various options. We can hold the proceeds until the child turns 18 or age of majority in their state. A court can appoint a guardian of the minor child’s estate. The guardian can then receive the benefits on behalf of the minor. Alternatively, a trust can be established for the benefit of the minor child, in which case the Trustee can receive the benefits on behalf of the minor.
Q. How many beneficiaries may I have on my policy?
A. Unlimited. Proceeds would first be paid to the Primary Beneficiary(s) if surviving, if not surviving they would then be paid to the Contingent (or second choice) listed, if that person is still alive at the time. In cases where more than one person is listed as the primary beneficiary, the proceeds would then be divided equally between them.
Q. Why would a policy pay the beneficiary rather than the person designated in a will?
A. Because a policy is a legal contract between the policyowner and insurance company, the policy will specify the procedure that the policyowner must use to designate a beneficiary. Ordinarily, the policyowner must follow the specified procedure or the beneficiary designation will be ineffective.
Q. How can I change my beneficiary?
A. You will need to fill out and sign our Change of Beneficiary form. You can obtain a form by calling the toll-free number listed below or by printing the form off of our website.
