How to Choose Your Life Insurance Beneficiary

Choosing a Life Insurance Beneficiary

At Life Insurance Network, we aim to make life insurance straightforward—including the process of selecting your policy’s beneficiary. A beneficiary is the person, people, or organization who will receive the death benefit if you pass away during your policy term. As the policyholder, you get to decide who that will be.

If you have several family members or dependents, this choice can feel complex. Choosing your beneficiary is a serious decision and shouldn’t be treated as just another step in the application process. Let’s look at how to approach it.

If You’re…

Married With Children
Most people in this situation name their spouse as the primary beneficiary. If both partners list each other, the benefit goes directly to the surviving spouse and children. You can also name contingent beneficiaries—such as a trusted guardian—in case both parents pass away.

Married Without Children
Again, naming your spouse as your primary beneficiary is common. This helps ensure your spouse is financially protected. For contingent beneficiaries, you might choose a parent, sibling, close friend, or a charitable organization you support.

Note: In community property states—Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, and Wisconsin—your spouse may be entitled to part of the benefit even if not named. Speak with a tax advisor or financial planner for guidance.

A Single Parent
If you want to name your child as your beneficiary, keep in mind that insurance companies can’t pay benefits directly to minors. Instead, the funds are given to the child’s legal custodian under the Uniform Transfer to Minors Act. You can name a custodian in your policy. Alternatively, you can designate a trust to manage the funds. A professional who specializes in trusts can help with setup.

Single Without Children
Even if you don’t have a spouse or kids, someone in your life might depend on you financially. For example, a parent or grandparent who co-signed a loan might benefit from being named. Choosing a beneficiary ensures the money goes where it’s needed most.

Other Things to Consider

You’re not limited to one beneficiary. You can name multiple primary beneficiaries and assign percentages of the payout to each. You can also name contingent beneficiaries, who receive the benefit if your primary choices are no longer living.

No matter who you choose, it’s important to notify them in advance. Many life insurance payouts go unclaimed simply because beneficiaries don’t know they were named. Having the conversation ensures they understand what to expect—and allows you to collect important information, like their address, Social Security number, and date of birth. This helps the insurer identify them if a claim is made, or locate them if it isn’t.

Still have questions about choosing a beneficiary? You can learn more in our guide on how life insurance works.

FAQs

Is your spouse automatically your beneficiary on life insurance?
No. You must specifically name your spouse as your beneficiary on the policy.

What if your beneficiary is not your spouse?
The benefit will go to whoever is listed. If you live in a community property state, it’s best to consult an estate planner.

Can I choose a beneficiary other than my spouse?
Yes. You can name any person, trust, or organization you wish.

Can I remove my spouse as beneficiary?
Yes. To do so, submit a beneficiary change form to your insurance provider.

Can I make my husband my beneficiary?
Absolutely. You can name your husband or anyone else you choose.

Can a beneficiary be deleted?
Yes. You can remove or change a beneficiary by updating your policy through your insurer.