Primary vs Contingent Beneficiaries
Common Beneficiary Mistakes
Naming a minor child directly: Life insurance companies cannot pay directly to minors. A court will appoint a guardian to manage the funds — often delaying payment months. Name a trust for the child instead.
Not updating after divorce: In many states, divorce does NOT automatically remove an ex-spouse as beneficiary. Update immediately after any divorce.
Naming "my children" without specifying: "My children" is ambiguous. Name each child specifically with their full legal name and date of birth.
No contingent beneficiary: If your primary beneficiary dies before you and you have no contingent, the benefit goes to your estate — subject to probate, creditors, and potential tax complications.
When to Update Your Beneficiaries
- Marriage or divorce
- Birth or adoption of a child
- Death of a named beneficiary
- Major changes in your estate or financial situation
- At minimum every 3–5 years as a general review
Frequently Asked Questions
Yes — you can name anyone as beneficiary, including friends, domestic partners, business partners, or charities. There are no legal restrictions on who can be named as beneficiary once a policy is in force.
Yes, for revocable beneficiaries — which is the default for almost all policies. An irrevocable beneficiary cannot be changed without that beneficiary's consent. If you named an irrevocable beneficiary (sometimes required in divorce settlements), consult an attorney before attempting to change it.
Their share typically goes to surviving primary beneficiaries, or to contingent beneficiaries if all primaries have died. Some policies use "per stirpes" designation — if a named beneficiary dies, their share passes to their own children. Specify per stirpes vs per capita to avoid ambiguity.