How do you change the beneficiary of a life insurance policy?

Question

José Manuel Alburquerque · Accepted Answer

Whoever took out the policy can change the beneficiary at any time, without the insurer having to accept it. A written declaration notified to the insurance company is enough, as is doing it in a will. The main exception is having waived that power in writing. Even if you do it in a will, notify the insurer as well, because if it does not know about it and pays the previous beneficiary in good faith, it may be released from liability. Ways of doing it In writing to the insurer, usually on its change of beneficiary form. Ask for proof that it has been received. In a will, clearly identifying the policy by insurance company and policy number. In group policies arranged through an employer, on the insurer's or the employer's form. It is not enough to tell the agent or the bank verbally, nor for the name to appear on an application. It must appear in the policy, in a written notice sent to the insurer or in the will. In principle, the latest designation made by any of these means is the one that counts. How to name beneficiaries properly State the full name and DNI (Spanish identity number) of each beneficiary and the percentage due to each. Provide for who is paid if a beneficiary dies before you, for example their children. Bear in mind what the law says about general wording. “My children” includes all descendants entitled to inherit. “My spouse” is whoever is your spouse when you die. If you live with a partner without being married, designate your partner by name, because “my spouse” may not include them. When it cannot be changed freely If you waived in writing the right to change it. In that case you also lose the right to surrender the policy, take advances on it, reduce it or pledge it as security. If the policy is linked to a mortgage or a loan, the bank is usually the first beneficiary for the outstanding debt and normally cannot be removed without its agreement while any debt remains. Whatever is left over can go to whoever you wish.