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Reviewing Beneficiary Designations

This is not a topic on which much time is spent. Most insured group plans contain an element of life insurance benefit. Usually not a large amount, however it could be three or four times salary. Beneficiaries designations are usually allocated to spouses, children, family members, estate or a favorite charity, at the time of benefit enrollment and forgotten about.

When to Review

If there is a marriage, divorce or separation in an employee's family it is most important to review. If a child is now over the age of majority and has had a trustee as a beneficiary it is again important.

Remember, if an estate is named as a beneficiary the money is administered by the terms of the will of the deceased. There will be additional costs, the proceeds are not creditor proof and sometimes there are many delays. A named beneficiary will receive the funds quickly and these are creditor proof.

When in doubt, contact your broker for advice .

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