A beneficiary change can occur
a) only upon the request of the revocable beneficiary
b) only on specified dates within the policy
c) normally at any time during the policy term
d) at no time
The Correct Answer Is:
- c) normally at any time during the policy term
A beneficiary change can occur normally at any time during the policy term. A beneficiary change can occur normally at any time during the policy term, regardless of whether the beneficiary is still alive or not. When a beneficiary dies, the insurance company must notify all beneficiaries of their right to receive benefits. If there are multiple beneficiaries and one of them does not want the policy to continue paying out benefits to them, they can contact the insurance company and request that their name be removed from the list.
A beneficiary change can occur without the request of the revocable beneficiary, as long as all other statutory requirements are met. A beneficiary change can be made by the executor of a will or by those authorized to make health care decisions for the deceased person if there is no will or if the will does not name a primary beneficiary.
The decision to make a beneficiary change should be made only after consulting with an attorney and considering all of your options. Beneficiary changes can be complicated and may require court approval. Be sure to document your decision in writing, including the reasons for making the change.
Many people believe that a beneficiary change can only occur on specific dates within a policy, but this is not true. Beneficiaries can change on any date within the policy, as long as the change is made before the policy anniversary.