Assigning beneficiaries is the easiest part of life insurance enrollment, right? Wrong. Employees often make mistakes when designating beneficiaries, which can lead to misunderstandings or financial difficulties for their families during already stressful times.
One of the most common mistakes is not updating beneficiary designations when life circumstances change. As part of your outreach during Life Insurance Awareness Month this September, encourage clients to remind employees about life changes that could prompt a beneficiary review. Marriage, divorce, births or adoptions are examples of milestones that often spur beneficiary changes.
As stewards of their employee benefits plans, remind your clients to prompt employees about beneficiary reviews — at least once every two years— to ensure employees' wishes are carried out when life insurance proceeds are distributed. Here are potential consequences if your clients don't properly update their beneficiary designations:
Complete your profile to continue reading and get FREE access to BenefitsPRO, part of your ALM digital membership.
Your access to unlimited BenefitsPRO content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Critical BenefitsPRO information including cutting edge post-reform success strategies, access to educational webcasts and videos, resources from industry leaders, and informative Newsletters.
- Exclusive discounts on ALM, BenefitsPRO magazine and BenefitsPRO.com events
- Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com
Already have an account? Sign In
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
