Beneficiaries

Answers in the beneficiaries topic.

• How do beneficiaries and life insurance payouts work?

  A beneficiary is the person or entity you name to receive the death benefit, and you can name primary and contingent beneficiaries and split percentages among several. After your death, the beneficiary files a claim with a certified death certificate and the insurer pays the benefit — commonly as a tax-free lump sum, though installment or annuity options may be offered. Keep designations current because they generally override your will, and if a policy goes unclaimed, the NAIC Life Insurance Policy Locator can help families find it.