Beneficiaries
Watch this video to learn about the importance of naming a beneficiary for your life insurance and retirement accounts.
Why is designating a beneficiary important for your accounts?
By saving, investing and taking advantage of your workplace benefits, it’s clear you’re focused on the future. Listing beneficiaries for your accounts lets you put a name to your future and can help you feel confident that your accounts will go the proper place when the time comes.
Not having a beneficiary on file could mean a long court process for your loved ones should something happen to you. If an account does not have a beneficiary listed, the account often needs to go through the probate process before benefits are distributed in accordance to plan provisions. Don’t leave your account to chance.
Steps to naming a beneficiary
When naming your beneficiary, you have options. You can list a member of your family, a friend or even a trust, charity or institution as your beneficiary. However, if you are married, your spouse is usually your primary beneficiary unless they waive their beneficiary rights.
You can also name more than one person as your beneficiary.
- A primary beneficiary would have access to your account should something happen to you.
- A contingent beneficiary would have access should something happen to both you and your primary beneficiary.
- You can list more than one primary and contingent beneficiary.
You’ll need to name a beneficiary for each of your financial and workplace benefit accounts.
While you may choose to list the same individual(s) or organization(s) as your beneficiary, you still need to be sure to complete your beneficiary information for each of your accounts. Remember, the beneficiaries you’ve listed for your retirement account do not automatically apply to your other workplace benefits.
When listing your beneficiary, it’s a good idea to have the following information available for each person you list:
- Name
- Date of birth
- Social Security number
You may still be able to complete your beneficiary designation without all of the above information. If you are missing anything, be sure to go back and update it later. The most important thing is that ensuring you’ve listed a beneficiary and that your wishes are documented.
You should get in the habit of reviewing your beneficiaries regularly. Plan a review during your company’s open enrollment period or consider celebrating Valentine’s Day with a quick beneficiary review. Making sure your loved ones are taken care of should something happen to you is a great way to show you care.
A review is especially important after a life event such as a change in marital status, birth or adoption of a child or the passing of a loved one.
Knowledge is power
Review our educational resources to for additional information and considerations when naming a beneficiary.
This material is provided for general and educational purposes only; it is not intended to provide legal, tax or investment advice. All investments are subject to risk. Please consult an independent legal or financial advisor for specific advice about your individual situation.
Products and services offered through the Voya® family of companies.
4340500_0325