What Is a Beneficiary in Life Insurance and How to Choose?

Who Is a Beneficiary in Life Insurance?

Difference Between Nominee and Beneficiary

What are the Types of Beneficiaries in Life Insurance?

Who Can Be a Beneficiary in a Life Insurance Policy?

When to Choose a Life Insurance Beneficiary?

How to Choose and Add a Life Insurance Beneficiary?

FAQs About Beneficiaries in Life Insurance

What happens to life insurance with no beneficiary? up-arrow

If no beneficiaries are mentioned in an insurance policy, the insurer will check whether policyholders have made a will of succession. If there is a will, the insurance company will give the death benefit according to that. The immediate heir, such as a spouse, parents or children, will get that assured sum.

Can I delist the names of beneficiaries? up-arrow

You can also change or delist them from your policy’s beneficiary list if required, especially if they pass away. However, it will be difficult to change an irrevocable beneficiary’s name without their consent.

What is an irrevocable beneficiary? up-arrow

An irrevocable beneficiary is a nominee whom policyholders cannot change without their consent. Furthermore, policyholders also need to notify irrevocable beneficiaries before delisting them.

When should a policyholder update their beneficiaries? up-arrow

Policyholders may need to update beneficiaries’ names after divorce or death. By changing their names, policyholders will ensure that the right person gets the sum assured.

Why should a policyholder add a secondary beneficiary? up-arrow

Individual policyholders should ideally add both types of beneficiaries to their life insurance plans. This way, they can ensure that the right person will get financial assistance on behalf of your dependent family members.