Who has the right to change a revocable beneficiary

Standard Life Insurance Contract Definitions

Life insurance policies are not standardized, but they do have many similarities. The most fundamental of all definitions is the distinction among the owner of the policy, the insured, and the beneficiary. Often, the owner of the policy is the insured, or the beneficiary can own the policy, or they can be 3 separate parties.

Table of Contents Show

Standard Life Insurance Contract Definitions
Beneficiary
Paying Life Insurance Proceeds into a Trust
What rights does a revocable beneficiary have?
Can you change who your beneficiary is?
Who can change a revocable beneficiary as part of an accident and health policy?
Can a spouse override a beneficiary?

The owner of a life insurance policy is the one who has the rights stipulated in the contract. These include the right to:

name a beneficiary
surrender the policy for its cash value
transfer ownership
receive participating dividends

The insured, who is often the owner of the policy, is the person whose death causes the insurer to pay the death claim to the beneficiary, who can be a person, trust, estate, or business. Although the owner has the right to name the beneficiary, whether the owner can change the beneficiary depends on whether the beneficiary designation is revocable or irrevocable.

Beneficiary

The beneficiary is named in the policy to receive the proceeds of the death claim. Specific types of beneficiaries include primary and contingent beneficiaries; specific and class beneficiaries; and revocable and irrevocable beneficiaries.

The primary beneficiary (aka direct beneficiary) is the beneficiary to receive the proceeds of the life insurance policy when the insured dies. However, if the primary beneficiary dies before the insured, then the contingent beneficiary will receive the proceeds. If the life insurance proceeds are paid in installments, and the primary beneficiary dies before receiving all the installments, then the contingent beneficiary will receive the remaining installments.

Minor children should never be named beneficiaries, because they lack the legal capacity to receive the insurance proceeds. Either a will should specify a guardian who can receive the life insurance proceeds on behalf of the children, or the life insurance should be paid into a trust for the children.

Life insurance proceeds should not be paid into an estate, because it will be subjected to probate and its associated costs and delays, and possibly estate taxes and claims of creditors.

A specific beneficiary is a named beneficiary, whereas a class beneficiary is a named group of people such as the children of the insured, or other such designation, meaning that the policy proceeds will be divided equally among the group. However, members of the entire class should be unambiguously identifiable; otherwise, there could be legal problems, and the money may not be distributed as the owner of the policy intended. For instance, does the children designation include illegitimate children, half-children, and step-children?

Most life insurance policies provide for a revocable beneficiary, giving the policyowner the right to change beneficiaries at any time before the insured's death, and without the consent of the beneficiary.

The policyowner cannot, however, change an irrevocable beneficiary without the beneficiary's consent. However, if an irrevocable beneficiary dies before the insured, then the policyowner generally has the right to name a new beneficiary. Most irrevocable beneficiary designations result from legal proceedings, such as a divorce decree.

Sometimes the insurance company is not sure who the rightful beneficiaries are, either because the designation of the beneficiaries was unclear, or because they cannot be found. To prevent legal liability by paying a wrong party, the insurance company may use an interpleader: an equitable legal proceeding effected by transferring the proceeds to a court, and letting the court determine the rightful beneficiaries.

Paying Life Insurance Proceeds into a Trust

Often, the beneficiaries are minor children, or mentally handicapped or elderly adults who cannot manage their own financial affairs. In these cases, it is best to pay the money into a trust managed for their benefit by the trustee, often the trust department of a bank. This will prevent the money from being squandered or invested unwisely, or having it taken away from gullible beneficiaries. It also offers the greatest flexibility in payment options, because the trustee can disperse the money to the beneficiaries as needed. For instance, money can be saved for college, and more can be paid out as needed when the children attend college, for instance.

Surviving Spouse means the widow or widower, as the case may be, of a Deceased Participant or a Deceased Beneficiary (as applicable).

Coordination of Benefits or “COB” means a provision establishing an order in which plans pay their claims, and permitting secondary plans to reduce their benefits so that the combined benefits of all plans do not exceed total allowable expenses.

Income beneficiary means a person to whom net income of a trust is or may be payable.

primary beneficiary means the individual for whose primary benefit the trust is then held. For purposes of Section 8.3, a Qualified Entity is a member of each Family Group to which such one or more Qualified Trusts that are its equity holders belong.

Refund beneficiary means an individual nominated by a qualified participant or a former qualified participant under section 66 to receive a distribution of the participant's accumulated balance in the manner prescribed in section 67.

Net death benefit means the amount of the life insurance policy or certificate to be settled less any outstanding debts or liens.

Pre-Retirement Survivor Benefit means the benefit set forth in Article 6.

Schedule of Benefits means the section of this policy which shows, among other things, the Eligibility Requirements, Eligibility Waiting Period, Elimination Period, Amount of Insurance, Minimum Benefit, and Maximum Benefit Period.

Beneficiary Designation Form means the form established from time to time by the Plan Administrator that the Executive completes, signs, and returns to the Plan Administrator to designate one or more Beneficiaries.

Surviving beneficiary or “surviving descendant” means a beneficiary or a descendant who did not predecease the decedent and is not considered to have predeceased the decedent under section 2702.

Qualified beneficiary means a beneficiary who, on the date the beneficiary's qualification is determined:

Survivor Benefit means the benefit set forth in Article 6.

Beneficiary designation means the naming in a governing instrument of a beneficiary of an insurance or annuity policy, of an account with POD designation, of a security registered in beneficiary form (TOD), of a pension, profit-sharing, retirement, or similar benefit plan, or of another nonprobate transfer at death.

Remainder beneficiary means a person entitled to receive principal when an income interest ends.

Death Benefit means the insurance amount payable under the Certificate at death of the Insured, subject to all Certificate provisions dealing with changes in the amount of insurance and reductions or termination for age or retirement. It does not include any amount that is only payable in the event of Accidental Death.

Assignment of Benefits means an arrangement whereby the Plan Participant assigns their right to seek and receive payment of eligible Plan benefits, in strict accordance with the terms of this Plan Document, to a Provider. If a provider accepts said arrangement, Providers’ rights to receive Plan benefits are equal to those of a Plan Participant, and are limited by the terms of this Plan Document. A Provider that accepts this arrangement indicates acceptance of an “Assignment of Benefits” as consideration in full for services, supplies, and/or treatment rendered.

Termination Benefit means the benefit set forth in Article 7.

Change in Control Benefit shall have the meaning set forth in Section 4.15(k) of the Agreement.

Beneficiary means the person, persons, trust or trusts that have been designated by a Participant in his or her most recent written beneficiary designation filed with the Committee to receive the benefits specified under the Plan upon such Participant’s death or to which Awards or other rights are transferred if and to the extent permitted under Section 10(b) hereof. If, upon a Participant’s death, there is no designated Beneficiary or surviving designated Beneficiary, then the term Beneficiary means the person, persons, trust or trusts entitled by will or the laws of descent and distribution to receive such benefits.

Designated Beneficiary means the beneficiary designated by a Participant, in a manner determined by the Committee, to receive amounts due or exercise rights of the Participant in the event of the Participant’s death. In the absence of an effective designation by a Participant, “Designated Beneficiary” means the Participant’s estate.

Former Spouse means the individual who is considered by Applicable Laws to be the Annuitant’s former spouse or common-law partner;

Beneficiary form means a registration of a security which indicates the present owner of the security and the intention of the owner regarding the person who will become the owner of the security upon the death of the owner.

Financial Beneficiary means any Principal of the Developer or Applicant entity who receives or will receive any direct or indirect financial benefit from a Development, except as further described in Rule 67-21.0025, F.A.C.

Qualified Preretirement Survivor Annuity means an annuity purchased with at least 50 percent of a Participant's vested interest in his Account that is payable for the life of a Participant's surviving spouse. The Employer shall specify that portion of a Participant's vested interest in his Account that is to be used to purchase the "qualified preretirement survivor annuity" in Section 1.19 of the Adoption Agreement.

land reform beneficiary , in relation to a property, means a person who -

Beneficiary(ies means the beneficiary(ies) designated by the Participant who are entitled to receive any distributions from the Plan payable upon the death of the Participant.

What rights does a revocable beneficiary have?

With a revocable beneficiary, the person or entity you choose has no guaranteed rights when it comes to receiving the death benefit. The policy owner is in total control. In this case, you as the policy owner, have the right to make changes on your own — that includes updating or changing the designated beneficiary.

Can you change who your beneficiary is?

Generally, you can review and update your beneficiary designations by contacting the company or organization that provides your insurance or retirement plan. You can sometimes do this online. Otherwise, you'll have to complete, sign, and mail a paper form.

Who can change a revocable beneficiary as part of an accident and health policy?

With a revocable beneficiary designation, the policyowner may change the beneficiary at any time without notifying or getting permission from the beneficiary.

Can a spouse override a beneficiary?

Key takeaways. A life insurance beneficiary designation usually overrides a current spouse or a will. Spouses in community property states must split the death benefit with the named beneficiary. Review (and update) your beneficiaries any time your situation changes.