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Helpful tips to choose your life insurance beneficiary
Aetna Life Insurance
Protect them tomorrow, starting today
Other things to keep in mind
You chose Aetna Life Insurance coverage to help protect your
loved ones. Now it’s time to carry forth that protection by
choosing your beneficiary. This is the person (or people) who
will receive your life insurance payout. It can also be a legal
entity, like a trust fund or an estate.
There are entire books and websites on how to choose a
beneficiary. Here are a few basics to help you get started.
It’s an important life decision
Naming a beneficiary helps protect your interests. And it
ensures your wishes are carried out quickly and correctly. So
you’ll want to take time with the decision.
If you don’t name a beneficiary, we’ll pay out benefits according
to your plan’s beneficiary provision.
Who should I choose as a beneficiary?
That’s a great question. And one without a clear-cut answer.
The primary purpose of life insurance coverage is to help
financially protect those left behind. So most people choose
relatives. Others choose close friends.
But you can also choose a legal entity, like a trust fund or
estate. Even a charity, if you like.
It’s always a good idea to check with an estate planner,
accountant or attorney before you make this important choice.
Generally, here’s how that works:
•We’ll first look to pay benefits to your spouse
•If no living spouse, we’ll look to pay equal shares to
your children
•If no children, then we’ll look to your parents
•If no living parents, we’ll look to your siblings
•If no siblings, then the payment goes to your estate
To see how your policy works, review your plan documents.
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If you need help choosing or
changing your beneficiary,
contact your employer’s benefits
representative. Or call us at
1-800-523-5065.
You can name as many beneficiaries as you want
So once you’ve figured out the who, it then comes down
to how you’d like to distribute your life insurance payout.
• First, choose a primary beneficiary. That’s the person,
people or entity that you want paid first.
• Next, choose a contingent beneficiary. That’s the person,
people or entity that you want paid if the primary
beneficiary is not alive at the time of your death, or
not entitled to receive payment.
You’ll want to gather information for each beneficiary
you choose, like:
•Full name
•Address
•Date of birth
•Social Security number
•Phone number
•Relationship to you
Some beneficiary choices may require a court process
That doesn’t mean you should avoid these choices. But it
does mean there may be extra time and work involved to
get the matter resolved in court.
If you choose your estate
There may be a court process to settle the estate. This is
called probate.
It helps:
•Protect your instructions
•Resolve all claims and distribute property under a valid will
•Confirm who is the personal representative or executor of
the estate
•Protect the interests of family members who may have
claims against the estate
•Protect the personal representative or executor against
claims and lawsuits
If you choose a minor
You decide how to divide the beneficiary payment
This only applies if you choose more than one beneficiary.
Use percentages. Just make sure the total for all primary
beneficiaries adds up to 100%.
If the beneficiary is under age 18, the parent may need to
ask the court to appoint a financial guardian or conservator
before the minor can receive anything you granted to him
or her.
Here’s a basic example:
Again, it’s a good idea to discuss your beneficiary selections
with a legal or financial professional. They can go over the
court process with you, inform you about your state’s
Uniform Transfers to Minors Act and offer suggestions such as
appointing a custodian ahead of time.
Spouse: 50%
Daughter:20%
Son:20%
Grandchild 1: 5%
Grandchild 2: 5%
Total:100%
Then go on and do the same math for any contingent
beneficiaries.
Protect your wishes, while
helping to protect them.
Take the time to choose your
beneficiary today.
Review your beneficiary choices from time to time
Life circumstances change. So it’s a good idea to review your
beneficiary selections to make sure they fit with your plans.
Especially after major events like a new child, marriage,
divorce or death in the family.
If you need help making changes, get in touch with your
employer’s benefits contact or representative. Or call us
at 1-800-523-5065 (8 a.m. to 7 p.m. ET, Monday – Friday).
Aetna is the brand name used for products and services provided by one or more of the Aetna group of subsidiary companies,
including Aetna Life Insurance Company and its affiliates (Aetna). Life insurance plans/policies are offered and/or
underwritten by Aetna Life Insurance Company (Aetna).
This material is for information only and is not an offer or invitation to contract. An application must be completed to obtain
coverage. Rates and benefits vary by location. Health insurance plans contain exclusions and limitations. Not all health services are
covered. Specific features of life insurance plans vary, depending on employers and states. Life insurance plans contain exclusions
and limitations. See policy or plan documents for a complete description of benefits, exclusions, limitations and conditions of
coverage. Information is believed to be accurate as of the production date; however, it is subject to change. For more information
about Aetna plans, refer to www.aetna.com.
Policy forms issued in Oklahoma include: GR-9/GR-9N and/or GR-29/GR-29N.
www.aetna.com
©2013 Aetna Inc.
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