Glossary

Beneficiary designation

The signed instruction on file with an insurer naming who receives a policy's proceeds, in what shares and in what order.

Also called: beneficiary form, change of beneficiary form

A beneficiary designation is the form the policy owner completes, at application or later, that tells the insurer who gets the death benefit. It names each beneficiary, gives their share as a percentage, says whether they are primary or contingent, and often states how a share passes if a beneficiary dies first (for example, per stirpes). Employer group policies, annuities and retirement accounts use the same kind of form.

The designation is a contract instruction, so it generally overrides a will: the insurer pays whoever is named on the most recent form it accepted. Hypothetical example: a man's will leaves everything to his second wife, but his old policy still names his first wife. Unless a state revocation-on-divorce law applies — and for employer plans governed by ERISA, such laws generally do not — the insurer pays the first wife.

Good designations use full legal names and identifying details, add up to 100% at each level and include contingents. Revisit the form after a marriage, divorce, birth or death, and keep the insurer's confirmation. Naming a trust can make sense for minors or blended families; naming the estate usually adds probate delay and exposure to creditors. See how to change your life insurance beneficiary and divorce and your ex as beneficiary: revocation-on-divorce laws.

Last reviewed October 4, 2026

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Related terms

Beneficiary The person, trust, charity or estate named to receive a life insurance death benefit or an annuity's remaining value when the insured or owner dies. Primary beneficiary The person, trust, charity or estate first in line to receive a life insurance death benefit when the insured dies. Contingent beneficiary The person or entity who receives life insurance proceeds only if every primary beneficiary has died or cannot accept the payment. Per stirpes A way of splitting proceeds by family branch, so if a beneficiary dies before the insured, that person's share passes to their own descendants. Irrevocable beneficiary designation A beneficiary choice the policy owner can't change or undo without that beneficiary's written consent, giving the beneficiary a vested interest. Revocation-on-divorce statute A state law that automatically cancels an ex-spouse's designation as beneficiary when a marriage ends, unless the owner names them again.

Related guides

How to review your life insurance policy every year A yearly check of coverage amount, beneficiaries, premiums, policy values and insurer health, with a step-by-step process and what to act on. What happens if your beneficiary dies before you Who gets the death benefit when a named beneficiary dies first: contingent beneficiaries, shares, anti-lapse rules, simultaneous deaths and the estate fallback. Life insurance beneficiary disputes and interpleader When two people claim one death benefit, insurers file interpleader. How Rule 22 and 28 U.S.C. 1335 work, and what claimants should do. Community property states and life insurance How community property law in nine states can give a spouse a claim to life insurance bought with marital earnings, even when someone else is the beneficiary. Elder financial abuse involving life insurance How older adults lose money through life insurance: forged beneficiary changes, drained cash value, pressured sales. Warning signs, safeguards and reporting. Employer life insurance, ERISA and beneficiary disputes How ERISA governs workplace life insurance beneficiary fights: the plan-documents rule, Egelhoff, Kennedy, claim deadlines and how to protect your form.

Related tools

Per stirpes vs per capita calculator Shows who receives what from a life insurance payout if one of your children dies before you, under a per stirpes and a per capita designation. Annual life insurance policy review checklist A 16-item yearly checklist covering coverage, beneficiaries, cash value policies and paperwork, to run each year or after a major life change.