Beneficiary designation change is the formal process a policyowner uses to update who will receive life insurance or annuity proceeds and in what shares. Changes are submitted on carrier forms or through e-signature workflows and must clearly identify new primary and contingent beneficiaries, their relationships, and percentage allocations or per stirpes instructions. For most policies, beneficiaries are revocable and can be changed at any time by the owner, but irrevocable beneficiaries, collateral assignments, or court orders may restrict changes or require additional consents. Properly documented changes ensure that benefits are paid according to the policyownerTMs current intent, not outdated designations from prior life stages.

Advisors trigger beneficiary designation changes after major life events such as marriage, divorce, adoption, business ownership transitions, or a beneficiaryTMs death. They help clients complete forms accurately, avoid ambiguous wording, and coordinate with attorneys when designations reference trusts or buy-sell agreements. Policy service departments verify signatures, ownership, and any required spousal or trustee consents before recording the change. Advisors remind clients that updating a will does not automatically change policy beneficiaries; dedicated beneficiary change requests are needed. Understanding beneficiary designation changes allows advisors to keep insurance-based wealth transfers synchronized with evolving estate, business, and family objectives.