Beneficiary change is the process of updating who will receive life insurance or annuity proceeds upon the insuredTMs or ownerTMs death. Policyowners can usually change primary and contingent beneficiaries at any time, as long as beneficiary designations are revocable and no legal restrictions apply (such as court orders or irrevocable beneficiary status). Changes are made by submitting carrier forms or electronic requests that clearly identify new beneficiaries, their relationships, and allocation percentages or per stirpes designations. Properly documented beneficiary changes are essential to ensure that proceeds are paid according to current wishes rather than outdated designations from prior life stages.

Advisors review beneficiary change needs during annual reviews and major life events such as marriage, divorce, birth of children or grandchildren, and deaths in the family. They help clients complete forms correctly, avoid ambiguous language, and coordinate designations with wills and trusts. CarriersTM policy service departments verify signatures and authority before recording changes, and disputes later often hinge on whether the last valid beneficiary change was processed correctly. Advisors emphasize that updating wills alone does not change insurance beneficiaries. Understanding beneficiary changes enables advisors to keep coverage aligned with evolving family structures and planning objectives, reducing the risk of disputes or unintended payouts.