Free Change of Beneficiary Letter

As the owner of an insurance policy, you may want to make changes to your beneficiaries. Usually the insurance policy, an insurance company rule, or a state law requires that certain formalities be observed to effectuate the change of a beneficiary. For example, an insurance company may require that an owner use a company form to change a beneficiary. An owner may also be required to enclose the actual insurance policy with the letter requesting a change of beneficiary. You should consult your insurance agent to determine whether such formalities apply to you.

A letter to an insurance company regarding a change of beneficiary should include the following information:

• Policy Number
  
• Insured's Name
  
• Owner's Name
  
• Name of the Primary Beneficiary (This can be either a proper name, like Jane Davis, or a categorical designation, like "my children.")
  
• Name of the Contingent Beneficiary (This can be either a proper name or a categorical designation.)

The recipient of this letter may have questions about some of the information that you have provided or may require additional information. Therefore, you should include information about how you would like to be contacted.

The owner of an insurance policy can use proper names (for example: "Jane Davis") or a category (for example: "my children") to designate beneficiaries. In some situations, using a category may be preferable because new members of a group are automatically included as beneficiaries. For example, suppose an owner designates "my children" as the beneficiaries of her policy at a time when she has two children. If she has another child the next year, that third child is automatically included as a beneficiary. On the other hand, if the owner had designated her first two children by name as beneficiaries, she would then need to contact the insurance company and report a change of beneficiaries in order to add the third child as a beneficiary.

The question of who you should choose as your primary and contingent beneficiaries requires careful consideration. For example, suppose that you are married and have two adult children. You must decide whether to name your spouse and children as primary beneficiaries or whether to name your spouse as your primary beneficiary and your children as the contingent beneficiaries. Suppose instead that you are a single parent with three young children. It is important to consider the best arrangement for providing for your young children. You should consult your insurance agent with questions and concerns about choosing beneficiaries.

There are several reasons why someone might want to change his or her name. The most common reason is marriage. It is typical for a wife to change her last name to her husband's last name. However, a husband may instead adopt the wife's last name, or the spouses may choose an entirely new name (perhaps a hyphenated form of their prior names). In addition, someone may decide to change his or her name for reasons other than marriage. For example, a man who dislikes his first name may decide to change it to a name that he has always liked, or a mother may want to change the last name of her young child to her last name after the child's father has abandoned the child. While every state allows people to change their names in certain circumstances, there may be limitations on the number of times that someone can change his or her name.

Usually the insurance policy, an insurance company rule, or a state law requires that certain formalities be observed to effectuate the change of beneficiary. For example, an insurance company may require that an owner use a company form to change a beneficiary. An owner may also be required to enclose the actual insurance policy with the letter requesting a change of beneficiary. You should consult your insurance agent to determine whether such formalities apply to you.

1. The owner of the life insurance policy should sign the letter.

2. If the owner of the life insurance policy lives in a community property state (Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, or Wisconsin), the owner's spouse should also sign the letter.

3. Unless the insurance company requires, it is not necessary that the letter be witnessed or notarized.

4. The insurance company may require the owner to enclose the actual policy with the letter requesting a change of beneficiary. The owner should consult his or her agent to determine whether this is necessary.

5. The owner should keep a copy of the letter for his or her records.

6. If the owner is incompetent, his or her guardian or agent under a power of attorney should consult an attorney regarding the power to change beneficiaries on behalf of the owner.