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Guide · Life & health insurance

Beneficiaries explained

Your beneficiary designation decides who receives the death benefit. A few minutes of review can prevent serious problems later.

4 min read · Last reviewed 2026-10

Primary and contingent beneficiaries

The NAIC describes a primary beneficiary as the person who receives the policy benefit, in whole or in part, if they outlive the policyholder. A contingent beneficiary receives the proceeds if a primary beneficiary dies before the policyholder.

Keep it current

  • The NAIC recommends making sure the person listed as your beneficiary is current and accurate and that your beneficiary knows about the policy.
  • Review your designation after marriage, divorce, a birth or adoption, or a death in the family.
  • Contact your insurer to change a designation. Use the insurer's required form.

Checklist

  1. Name a primary beneficiary and at least one contingent beneficiary.
  2. Use full legal names and keep contact details up to date.
  3. Tell your beneficiaries where to find the policy.
  4. Review every few years and after major life events.

Questions

Can I have more than one beneficiary?

Policies generally allow several beneficiaries and let you split the benefit by percentage. Ask your insurer how to set that up.

What if I forget to update it?

Your insurer pays according to the designation on file. Keeping it current avoids surprises.

Sources

Informational only. Rules and policy terms change and differ by state and insurer. Confirm details with your policy, your insurer or your state insurance department.

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